BOJ Deputy Governor Himino Ryozo (氷見野良三) spoke in Saitama City, declining to discuss the timing or pace of additional rate hikes while emphasizing the risk of upside inflation surprises and indicating that he intends to maintain the BOJ's rate-hike stance.
At a speech in Saitama City, BOJ Deputy Governor Himino Ryozo (氷見野良三) said it was necessary to remain more aware than ever of the risk of upside inflation surprises, while avoiding specific comments on the timing or pace of additional rate hikes. He indicated that the BOJ intended to continue discussions at future monetary policy meetings.
He said rising oil prices, continued yen depreciation and expanding AI demand could increasingly affect inflation. With underlying inflation approaching 2%, he warned that delays in raising rates could cause inflation to exceed 2%. He stressed that efforts to avoid rapid rate hikes would also affect small and medium-sized enterprises, housing loans and public finances.
The BOJ's next meeting is scheduled for 17–18 September. At its June meeting, the BOJ raised its policy rate from around 0.75% to around 1.0%. After deciding to leave rates unchanged at its July meeting, market expectations grew that the BOJ would proceed with an additional rate hike at the September meeting.
Views on the market outlook remain divided among experts, with differing opinions on whether rates will be raised in September and on the extent of any move.