Seiichi Shimizu, Assistant Governor at Japan’s central bank, cautioned that normalizing monetary policy must be done carefully given lingering uncertainty over how the economy will react to positive interest rates. He noted inflation expectations remain below target and structural factors are less understood in a positive rate regime. Shimizu called for policymakers to be incremental in their approach, especially considering the long era of low rates in Japan. The remarks add nuance to BOJ’s evolving stance on unwinding stimulus.