BOJ Deputy Chief Seeks More Rate Hikes Amid Inflation Risks

Bank of Japan (BOJ) Deputy Governor Ryozo Himino has urged for more interest rate hikes to combat inflation risks. Himino emphasized that the weaker yen's impact on prices is a growing concern, citing rising crude oil and semiconductor prices as factors contributing to this trend.

He noted that raising rates in a timely manner will help prevent inflation acceleration and abrupt rate hikes in the future, benefiting 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 stated that the central bank will consider it at every meeting.

The BOJ has already lifted its benchmark rate to a 31-year high of 1.0 percent in June, with financial markets anticipating a rate hike in September due to the yen's depreciation and expectations for a delayed U.S. Federal Reserve rate hike.