BOJ Deputy Calls for Timely Rate Hikes to Combat Inflation Risks
Bank of Japan Deputy Governor Ryozo Himino emphasized the need for timely interest rate hikes to address inflation risks, echoing market expectations.
Himino spoke at a news conference in Urawa, Japan, on August 27 and highlighted the impact of rising fuel costs from the Middle East war, global AI demand, and high import prices due to a weak yen on Japanese inflation.
The BOJ's deputy governor stated that underlying inflation is approaching 2% and that the central bank must balance the need for timely rate hikes with gathering information before making decisions. Himino acknowledged that raising rates could help stabilize price growth around the target level.
Market expectations suggest a September rate hike, with some sources indicating that the BOJ may increase borrowing costs more aggressively in the future. Analysts, including Shotaro Mori of SBI Shinsei Bank, note that Himino's comments were generally hawkish and suggest a live meeting in September.