In remarks and a press conference last week, Bank of Japan Deputy Governor Himino (氷見野) did not clearly signal a rate hike, but conveyed an overall hawkish stance. At the same time, excessive yen depreciation was avoided, and the continuity of the dialogue was viewed positively.
Bank of Japan Deputy Governor Himino (氷見野) delivered remarks and held a press conference, and was reported not to have clearly signaled a rate hike. Overall, a strongly hawkish stance that was positive toward rate hikes came through, suggesting a shift toward tighter monetary policy rather than a continuation of the status quo.
The remarks were judged to have avoided an excessive depreciation of the yen, while the dialogue was viewed as having received a certain degree of positive feedback from market participants. The yen's movements will continue to warrant close attention.
The remarks also suggested an emphasis on dialogue between the Bank of Japan and the market, and attention is focused on how the market will interpret future monetary policy operations and respond.