At a speech in Saitama, BOJ Deputy Governor Himino Ryozo (氷見野良三) suggested that the Bank could raise rates even though financial conditions remain accommodative. He stressed that the risks surrounding achievement of the 2% inflation target need to be considered more closely than before. The next meeting is scheduled for 17 and 18 September.
BOJ Deputy Governor Himino Ryozo (氷見野良三) indicated that the Bank intends to continue raising the policy rate and adjust the degree of monetary easing, even though financial conditions remain accommodative. His remarks left open the possibility of further rate hikes and showed that the Bank is keeping inflation risks in mind.
Himino Ryozo (氷見野良三) said that the possibility of inflation rising above the BOJ's 2% target needs to be considered more closely than before, citing factors such as higher crude oil prices and the yen's depreciation. He also expressed concern about the impact of exchange-rate movements on prices.
The BOJ's next meeting is scheduled for 17 and 18 September, and markets view the probability of a rate hike as high. The Bank's decision at the meeting will require close attention, while some observers believe that the move is intended to prevent inflation from accelerating because of a delay.