BOJ Deputy Governor Calls for Timely Rate Hikes to Avoid Inflation Spikes

Bank of Japan Deputy Governor Ryozo Himino emphasized the importance of raising interest rates in a timely manner to avoid potential spikes in inflation. Speaking at a recent speech, Himino warned that if underlying inflation deviates above the central bank's 2% target, it could have an adverse impact on the economy.

Himino noted that the BOJ should pay greater attention to upside risks to prices than in the past and hold in-depth deliberations on this topic at each monetary policy meeting. He also mentioned that a weak yen could push up inflation faster than before, citing it as one of the key factors the BOJ will consider when guiding its policy.

Himino stated that adjusting still-loose financial conditions through rate hikes would help distribute assets more efficiently to investment with growth potential. With underlying inflation approaching 2%, he said the BOJ must focus on stabilizing price growth around that level.