BOJ Deputy Governor Sees Timely Rate Hikes as Key to Avoiding Inflation Spike

Bank of Japan Deputy Governor Ryozo Himino emphasized the importance of raising interest rates in a timely manner to prevent inflation from surging beyond target levels. In a speech to business leaders, Himino warned that if underlying inflation deviates above the 2% target, it would have a negative impact on the economy.

Himino stated that adjusting still-loose financial conditions through rate hikes would help distribute assets more efficiently to investments with growth potential. He also highlighted the need for business leaders to pay greater attention to upside risks to prices than in the past.