Bank of Japan board member Kazuyuki Masu said the central bank will continue raising its policy rate and adjust monetary accommodation as underlying inflation nears 2%. Speaking in Fukui on Thursday, he noted the pace of hikes will hinge on progress toward the July baseline scenario and risks from crude oil, AI-driven demand and FX moves. Masu warned that higher fuel and chemical costs tied to the Iran situation could prove more than temporary by lifting distribution and other expenses. Food prices also face pressure from rising domestic logistics, shipping fees and imported fertilizer, raising concern over persistent inflation. He added that recent rate hikes have not curbed firms’ funding demand, which has instead grown, though risks of overheating in corporate investment remain. Households overall hold net asset surpluses, but younger borrowers face heavier housing-loan burdens despite stronger wage growth.