BOJ Deputy Hints at Rate Rise in September Amid Inflation Concerns

Bank of Japan (BOJ) Deputy Governor Ryozo Himino hinted at a possible interest-rate increase in September, citing upside risks to prices. Speaking at a press conference in Saitama near Tokyo, Himino emphasized the need for vigilance on inflation targets.

Himino noted that the underlying inflation rate is approaching 2%, the BOJ's target, and expressed hope to steer monetary policy accordingly. He also echoed the view of Governor Kazuo Ueda that the pace of policy-rate increases could be accelerated.

Regarding a potential September rate rise, Himino said the BOJ would consider lifting its policy rate 'at every monetary policy meeting, including the next one'. Many market participants expect a rate increase this month.