BOJ Signals Continued Rate Hikes Amid Inflation Risks

Bank of Japan Deputy Governor Ryozo Himino emphasized the central bank's stance to continue raising policy rates, stating that the current financial environment is accommodative.

Himino spoke at a meeting in Saitama on August 27, where he also highlighted the need for caution regarding inflationary risks. He mentioned that preventing delayed rate hikes from intensifying inflation and forcing sharp rate increases would be desirable for small and medium-sized enterprises, mortgage users, and public finances.

The Bank of Japan is scheduled to hold a monetary policy meeting on September 17-18, with think tank Totan Research projecting an 87% probability that the meeting will decide on a rate hike. This potential increase would mark the fastest pace of rate increases on record if it happens.