Japan39;s neutral rate likely to be at least 1, Tamura says
Japan making further progress in durably hitting price goal
Tamura sees upside inflationary risk rising
Remarks follow string of BOJ comments signaling more hikes

OKAYAMA, Japan, Sept 12 Reuters The Bank of Japan must raise interest rates to at least 1 by late next year, hawkish policymaker Naoki Tamura said on Thursday, reinforcing the bank39;s resolve to persist with steady monetary tightening.

It was the first time a BOJ policymaker publicly specified a level the central bank should eventually target in pushing up shortterm borrowing costs.

Tamura said the likelihood of Japan39;s economy sustainably achieving the BOJ39;s 2 inflation was improving, which meant the central bank must raise interest rates to levels deemed neutral to the economy by around late 2025.

He said Japan39;s neutral rate of interest, or the level that neither cools nor stimulates the economy, is estimated to be at least around 1.

As such, it39;s necessary to push up our shortterm policy rate at least to around 1, by around the latter half of the fiscal year ending March 2026 to sustainably achieve the BOJ39;s price goal, Tamura said in a speech to business leaders in Okayama, western Japan.

Tamura39;s remarks follow a string of comments from BOJ board members calling for the bank to keep raising borrowing costs despite recent volatility in financial markets.

The BOJ is set to leave rates unchanged at its next meeting on Sept….