A Bank of Japan board member: The neutral interest rate appears to be around 2%.

The summary of opinions from last week's policy meeting shows that one of the nine members of the Bank of Japan's Monetary Policy Committee stated that the neutral interest rate appears to be around 2%. Another member indicated that the policy rate is still below the estimated range of the neutral interest rate. This member stated that the policy rate should be raised closer to the neutral interest rate as soon as possible. Note: The Bank of Japan's estimate of the neutral interest rate is approximately 1.1%-2.5%. One member suggested that it is advisable for the central bank to consider raising interest rates every few months. Note: The Bank of Japan raised the policy rate to 1% at the June meeting, in line with widespread expectations.