BOJ Signals Fastest-Ever Rate Hike Pace as Market Sentiment Favors Increase

The Bank of Japan (BOJ) has signaled its intention to continue raising its policy interest rate, with Deputy Governor Himino Ryozo stating that the central bank will 'continue raising the policy interest rate to adjust the degree of monetary easing.'

At a financial and economic briefing in Saitama, Himino emphasized the need for the BOJ to be mindful of the risk of inflation rising beyond expectations. He highlighted the importance of avoiding a scenario where delayed rate hikes allow inflation to worsen, forcing a sharp and rapid tightening.

The BOJ is scheduled to hold its monetary policy meeting on September 17-18, with think tank Todan Research estimating an 87% probability of a rate hike being decided at that meeting. Market sentiment also favors a rate increase, which Himino's remarks reinforced.