BOJ Deputy Chief Sees Need for More Rate Hikes Amid Inflation Risks

Bank of Japan Deputy Governor Ryozo Himino has called for further rate hikes to combat inflation risks, citing the weaker yen's impact on prices. Himino emphasized that the central bank should pay greater attention to the upside risk to prices than in the past, given factors such as higher crude oil prices and rising semiconductor prices driven by global AI demand.

At a recent event in Saitama, near Tokyo, Himino stated that raising rates in a timely manner will help avoid inflation acceleration and abrupt rate hikes in the future. He noted that this approach would serve the best interests of small- and medium-sized firms and mortgage borrowers.

Himino did not provide clear signals about the timing or pace of the next rate hike but indicated that the central bank will consider it at every meeting, including the upcoming one on September 17-18. The BOJ's previous meeting in July saw the benchmark rate left steady after a 31-year high of 1.0 percent in June.