BOJ Hawkish Stance Echoed by Deputy Governor; BOK Signals Slower Rate Hikes

Deputy Governor Ryozo Himino of Japan's Bank of Japan (BOJ) echoed his counterpart, Governor Kazuo Ueda's recent hawkish remarks on interest rates. Speaking on [current date], Himino emphasized that further rate hikes are likely if the economy and prices align with forecasts. He noted that while the economy is recovering moderately, wage growth and inflation must be closely monitored.

Himino stressed that the BOJ's decisions will remain data-dependent, but his hawkish tone marks a clear shift from the prolonged ultra-loose policy of the past decade. This unified stance suggests a coordinated message from the BOJ leadership, reinforcing market expectations of a gradual tightening cycle.

However, in contrast, South Korea's Bank of Korea (BOK) signaled that it will continue to raise rates but at a slower pace. 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.