Bank of Japan board member Tamura said interest rates should be raised gradually toward a neutral level, which he estimates to be around 2 percent. He urged periodic rate hikes every few months, warning that companies could pass higher costs on to consumers more quickly and broadly. Japan has achieved its 2 percent inflation target, but there is a risk of inflation overshooting. Tamura emphasized that moving to a neutral rate requires close monitoring of the economy, prices and financial markets, and that exchange‑rate movements should reflect underlying fundamentals, as currency swings now have a stronger impact on inflation than before.