Bank of Japan Deputy Governor Himino (氷見野) spoke in Saitama, warning of upside risks to prices ahead of next month's Monetary Policy Meeting and suggesting that the Bank would continue on its path of raising interest rates. Market reports say expectations of a rate hike at next month's meeting are growing.
Bank of Japan Deputy Governor Himino (氷見野) spoke in Saitama and said that, with the underlying inflation rate approaching the 2% target, it was necessary to be more alert than before to upside risks to prices.
In his speech, he expressed the view that it would be desirable to ease off on the accelerator at an appropriate time, indicating that the Bank would continue on its path of raising interest rates.
Market expectations are growing that interest rates will be raised at the Monetary Policy Meeting to be held on the 17th and 18th of next month.
At a press conference the same day, Kiuchi (木内) of Nomura Research Institute said the remarks could be interpreted as confirming expectations of a rate hike, and expressed the view that the possibility of a rate hike in September had increased.