BOJ's Himino Sees Need for Timely Rate Hikes Amid Inflation Risks

Bank of Japan (BOJ) Deputy Governor Ryozo Himino emphasized the need for timely interest rate hikes to combat mounting inflation risks. Speaking at a business leaders' gathering in Urawa, Japan, he stressed that raising rates would help stabilize price growth around the BOJ's 2% target.

Himino acknowledged that the economy is facing headwinds from global events, including the Middle East conflict and rising chip prices due to AI demand. He noted that a weak yen could further exacerbate inflationary pressures.

Despite refraining from giving explicit signals on the timing of the next rate hike, Himino's hawkish comments have reinforced market expectations for a near-term increase in borrowing costs.