In a speech, BOJ Deputy Governor Himino Ryozo (氷見野 良三) indicated that the Bank would continue raising interest rates and adjusting the degree of monetary accommodation, while emphasizing the need to remain alert to upside risks to prices.
In a speech in Saitama, BOJ Deputy Governor Himino Ryozo (氷見野 良三) indicated that the Bank would continue raising its policy rate and adjusting the degree of monetary accommodation. While he gave no clear signal that an additional rate hike was imminent, Himino Ryozo (氷見野 良三) indicated that future policy decisions would be based on price developments.
At a press conference after the speech, Himino Ryozo (氷見野 良三) emphasized the need to remain more alert than before to upside risks to prices, signaling a proactive stance on rate hikes. The BOJ had only just raised its policy rate to 1.0% in June, making developments at the next Monetary Policy Meeting a focus of market attention.
Market expectations are building that the BOJ could proceed with an additional rate hike at its next meeting in September. Himino Ryozo (氷見野 良三) pointed out that real interest rates remain largely negative and indicated that Japan’s financial conditions remain accommodative.
Himino Ryozo (氷見野 良三) explained that policy decisions should focus on underlying price trends in light of the 2% price stability target. He also indicated that supply constraints, higher crude oil prices, stronger AI-related demand and yen depreciation were affecting underlying price trends.