Bank of Japan (BOJ) Deputy Governor Ryozo Himino said on Friday (August 23) that the central bank should continue raising its key policy interest rate, citing rising inflation risks. His comments came ahead of the central bank's policy meeting scheduled for next month.
Speaking at a conference, Himino stressed that interest rate adjustments should be made in line with price developments. He noted that Japan's economy is facing upside price risks, requiring the BOJ to take careful but steady steps on its path toward monetary policy normalization.
Himino's remarks come as markets await clearer signals on the BOJ's rate-hike trajectory. The central bank has repeatedly indicated it will continue tightening policy if the economy and prices move in line with forecasts.
The BOJ's next policy meeting is scheduled for September, with analysts questioning the speed and scale of rate adjustments after years of ultra-loose monetary policy.
