BOJ's Himino Flags Timely Rate Hikes Amid Inflation Pressures

Bank of Japan Deputy Governor Ryozo Himino emphasized the need for timely interest rate hikes to avoid being behind the curve on inflation. In a news conference, Himino stressed that the BOJ must balance gaining information and acting promptly to stabilize prices.

Himino's views on the economic and price outlook have not changed much since the BOJ's previous meeting in July. He highlighted mounting inflationary pressures caused by rising fuel costs from the Middle East war, robust global AI demand, and high import prices due to a weak yen.

The Deputy Governor also noted that Japan has entered a phase where the BOJ must consider the possibility of underlying inflation exceeding its 2% target. Himino stated that if underlying inflation deviates above the target, it would have an adverse impact on the economy.