The BOJ deputy governor indicated that the Bank will continue to raise its policy rate while adjusting the degree of monetary easing in light of economic, price and financial conditions. Year-on-year inflation is expected to remain above 2% in the second half of the fiscal year.
BOJ Deputy Governor Himino (氷見野) emphasized that the Bank would adjust the degree of monetary easing rather than tighten monetary policy, and indicated that it would raise the policy rate in response to economic, price and financial conditions.
He said year-on-year consumer price inflation was expected to remain above 2% in the second half of the fiscal year, and also referred to the need to remain alert to upside risks to prices.
He said the timing and pace of adjustments would be considered while assessing the likelihood of the central outlook for the economy and prices being realized, along with the effects of factors including the situation in the Middle East, expanding demand related to AI and exchange-rate movements.
He indicated that the direction of policy could change depending on future developments, and readers will want to watch for new information that could influence the BOJ’s policy decisions.