Bank of Japan Deputy Governor Himino Ryozo (氷見野 良三) told a press conference in Saitama City that the risk of prices rising more sharply than before needs to be closely monitored, indicating that rate hikes would be considered, including at the next meeting.
At a press conference, Bank of Japan Deputy Governor Himino Ryozo (氷見野 良三) said that higher crude oil prices, a weaker yen and increased demand for artificial intelligence (AI) could push up prices, and pointed out that the risk of inflation needs to be monitored more closely than before. He said rate hikes would be "carefully considered at every meeting," including the next Monetary Policy Meeting on 17 and 18 September. Although markets are pricing in a high probability of a rate hike at the September meeting, he avoided commenting on the actual timing.
Japan and the United States' coordinated yen-buying intervention in July has become a factor raising expectations of a rate hike. In a speech before the press conference, he explained that current financial conditions remain accommodative and emphasized the Bank's stance of continuing to raise the policy rate and adjust the degree of monetary easing.