BOJ Deputy Governor Seeks Rate Hikes to Curb Inflation and Weakened Yen

The Bank of Japan's deputy governor Ryozo Himino has called for more rate hikes to counteract the weaker yen's impact on inflation. In a recent speech, Himino emphasized that higher crude oil prices due to the Middle East conflict and rising semiconductor prices driven by AI-related demand are factors that need consideration.

Himino stressed the importance of avoiding inflation acceleration and abrupt rate hikes in the future, which would serve the best interests of small- and medium-sized firms and mortgage borrowers. He noted that raising rates in a timely manner will help mitigate these risks.

The central bank will consider a rate hike at every meeting, including the next one on September 17-18, by assessing whether prices and economic activity are moving within expectations. Himino did not offer clear signals about the timing or pace of the next rate hike but indicated that it's possible in September.