Kazuo Ueda: The Bank of Japan can currently only estimate the neutral interest rate within a relatively wide range.

Jinse Finance reported that Bank of Japan Governor Kazuo Ueda stated that currently, the neutral interest rate level can only be estimated within a relatively wide range. The market generally expects the central bank to raise interest rates again this month, bringing rates closer to the neutral level. "Regarding the neutral interest rate, unfortunately, at present we can only estimate it within a fairly broad range," Ueda said in parliament on Thursday. "We do not know its precise level, but how much the nominal interest rate will eventually rise and what level is appropriate will depend on this. I want to emphasize that there is a certain degree of uncertainty involved." Ueda added that the Bank of Japan is trying to narrow the estimated range of the neutral interest rate, and if successful, will announce it to the public. The Bank of Japan previously released a research report stating that the neutral interest rate is roughly between 1% and 2.5%.