BOJ Deputy Chief Seeks More Rate Hikes on Inflation Fears

Bank of Japan Deputy Governor Ryozo Himino has called for more rate hikes to address inflation risks. In his remarks, Himino emphasized the need for the BOJ to pay greater attention to upside risks to prices than in the past. He noted that higher crude oil prices due to the Middle East conflict, rising semiconductor prices driven by AI-related demand, and the recent depreciation of the yen will contribute to price increases.

Himino's comments come ahead of a policy meeting next month, where some market participants expect a BOJ rate hike. This would be in line with BOJ Governor Kazuo Ueda's statement that the bank may raise rates faster than previously anticipated if necessary. A joint yen-buying intervention by Japan and the US authorities has also contributed to expectations for a September rate hike.