BOJ Deputy Governor Calls for Timely Rate Hike Amid Inflation Concerns

Bank of Japan Deputy Governor Ryozo Himino called for a timely rate hike to prevent a surge in inflation. Speaking at a business leaders event, Himino emphasized the need to adjust interest rates to distribute assets more efficiently and avoid abrupt increases in the future.

Himino noted that underlying inflation is approaching 2%, and if it deviates above this target, it could have negative effects on the economy. He stressed the importance of paying attention to upside risks to prices and holding in-depth deliberations at each monetary policy meeting.

The BOJ deputy governor also pointed out that a weak yen can push up inflation faster than expected. Himino said that the impact of exchange-rate moves on inflation is a key factor in guiding policy, and the bank will need to check various information, including economic and price developments and financial conditions, before making any decisions.