BOJ Deputy Governor Echoes Hawkish Tone, BOK Signals Slower Rate Hikes

The Bank of Japan's Deputy Governor Ryozo Himino echoed his governor's hawkish stance on interest rates, indicating that further rate hikes are likely if inflation trends toward the 2% target. This unified stance with Governor Kazuo Ueda suggests a coordinated message from the BOJ leadership, reinforcing market expectations of a gradual tightening cycle.

Himino emphasized that while the economy is recovering moderately, wage growth and inflation must be monitored closely. He stressed that the BOJ's decisions will remain data-dependent, but this hawkish tone marks a clear shift from the prolonged ultra-loose policy that characterized the past decade.

Contrastingly, the Bank of Korea signaled that it will continue to raise rates but at a slower pace, citing concerns about economic growth and household debt. The BOK's governor emphasized the need to balance inflation control with financial stability, suggesting that the pace of future hikes will be more measured.