BOJ Deputy Governor Himino Faces Pressure as Inflation Approaches 2% Target
The Bank of Japan (BOJ) is facing pressure to raise interest rates further in September, amid growing concerns about upside inflation risks. BOJ Governor Kazuo Ueda has indicated that the board will engage in thorough discussions at their next policy meeting, citing the need for price stability as inflation approaches the 2% target.
Deputy Governor Ryozo Himino is set to speak to business leaders on August 27, where he is expected to discuss the latest economic and financial conditions. His speech comes ahead of the September 17-18 policy meeting, when the board will vote on their latest stance.
The BOJ's core measures of consumer price index (CPI) for July showed a year-on-year increase of 1.8% in the core CPI (excluding fresh food), and 1.9% in the total CPI. Underlying inflation, as measured by the core-core CPI, picked up to 1.9%, well below the recent peak of 3.4% reached in June 2025.
The government's monthly economic report for July will be released on August 27-28, which is expected to provide further insight into Japan's economic conditions. The report has warned that higher energy costs amid the lingering Mideast conflict could trigger widespread markups in consumer prices.