It was confirmed that the remarks by BOJ Deputy Governor Himino (氷見野) at a meeting in Saitama had been posted on the Bank of Japan's website. While expressing the view that the risk associated with the fourth supply chain disruption scenario had diminished, he also commented on the future conduct of interest-rate policy.
The remarks by Deputy Governor Himino (氷見野) at the Saitama Prefecture Financial and Economic Meeting were posted on the Bank of Japan's website on 27 August. Regarding the fourth scenario involving supply chain disruptions, the remarks indicated that the impact would extend beyond securing supplies by affecting the securing of quantities as well as prices, but concluded that the risk had “become considerably smaller.” On interest rates, they stated that a 1% rate in a non-deflationary era could be lower than the zero and negative interest rates seen under deflation, and pointed to the importance of conducting monetary policy with due regard for both the accelerator and the brakes.
While the Bank of Japan emphasized adjusting the degree of monetary easing, it also expressed the view that price developments under inflation should be addressed appropriately and warned against complacency. The remarks also referred to underlying figures, including trends in the corporate goods price index and the impact of subsidies, and indicated the view that sharp developments resulting from delayed rate hikes should be avoided.
The article includes an introduction to works by Kubota Hiroyuki (久保田 博幸) and links to recent articles, followed by commentary focused on Deputy Governor Himino's (氷見野) views and the Bank of Japan's approach to conducting monetary policy.