BOJ Deputy Chief Sees Timely Rate Hikes Needed Amid Inflation Risks

Bank of Japan Deputy Governor Ryozo Himino emphasized the need for timely interest rate hikes to combat inflation risks. Speaking at a news conference, he highlighted mounting inflationary pressures caused by rising fuel costs and robust global demand.

Himino noted that underlying inflation is approaching 2 percent and warned that exceeding this target would have adverse effects on the economy. He stated that in-depth deliberations should be held at each monetary policy meeting to consider these perspectives.

The BOJ deputy chief's speech has been closely watched by markets for clues on the pace and timing of future rate hikes. Sources have told Reuters that the BOJ is set to raise the rate as soon as September, considering hiking more aggressively than its current pace of roughly two times a year.