Japan has “completely” ended deflation and it’s absolutely natural for the central bank to proceed with rate hikes to normalize policy, according to former BOJ Governor Haruhiko Kuroda, whose term was defined by ultra easy monetary settings.

The Bank of Japan will continue to raise interest rates if underlying inflation accelerates toward its 2% target as projected, a senior central bank official said on Wednesday. "Underlying inflation is heading toward 2% but still remains below that level now.

Japanese nominal wages rose at the fastest pace in nearly three decades, supporting the Bank of Japan’s latest rate hike decision and keeping the bank on track for further tightening steps.