At a news conference, Bank of Japan Deputy Governor Himino (氷見野) said that the pace and timing of future rate hikes would be considered after assessing the likelihood of realizing the central economic and price outlook and the associated risks. He did not comment on market pricing for a September rate hike and offered no specifics on the policy stance at any particular meeting.
Bank of Japan Deputy Governor Himino Ryozo (氷見野 良三) stressed at a news conference following a meeting on financial and economic issues in Saitama Prefecture that the pace and timing of future rate hikes would be considered while assessing the likelihood of realizing the central economic and price outlook and the associated risks. He did not comment on market pricing for a September rate hike.
Himino (氷見野) said he had reaffirmed that the decision criteria set out in the Outlook for Economic Activity and Prices were their own decision criteria. He explained that decisions on the pace and timing would take into account factors including developments in the Middle East, increased AI demand and exchange-rate movements, while closely monitoring the risk that underlying inflation could overshoot above 2%.
At a news conference after the July meeting, Governor Ueda Kazuo (植田 和男) suggested that the Bank could accelerate the pace of rate hikes if financial conditions were too accommodative while it monitored price developments. Deputy Governor Himino (氷見野) indicated that decisions would not be based on financial conditions alone.
While emphasizing the need to remain alert to upside risks to prices as underlying inflation approaches 2%, Himino (氷見野) said in response to a question about whether the Bank had become more of an “inflation fighter” that it was focusing more on underlying price trends than on any change in the Bank’s character.
While acknowledging that domestic demand was weak in April-June GDP, he said there was no need to significantly change the overall view of the economy.