BOJ deputy governor keeps September rate rise under consideration
Ryozo Himino highlights upside price risks and says the central bank will assess whether to raise rates at each policy meeting, including September.
- Bank of Japan (BOJ) Deputy Governor Ryozo Himino stated that an interest rate increase at the September policy meeting is under consideration.
- The potential for a rate hike is driven by "upside risks to prices" as underlying inflation approaches the bank's 2% target.
- Himino also agreed with BOJ Governor Kazuo Ueda's view that the pace of future policy-rate increases could be accelerated.
Ryozo Himino, deputy governor of the Bank of Japan (BOJ), highlighted upside risks to prices on Thursday (August 27) while keeping open the possibility of an interest-rate increase in September.
He was speaking at a press conference in Saitama, near Tokyo.
“We need to be even more mindful of upside risks to prices, given that the underlying inflation rate is approaching (the BOJ’s inflation target of) 2%,” Himino said.
“We hope to steer monetary policy appropriately to bring the underlying inflation rate to 2%.”
Himino also addressed a July remark by BOJ Governor Kazuo Ueda that the pace of policy-rate increases could be accelerated.
“I agree with that view,” he said.
On the timing of any further increase, Himino said the BOJ would consider whether to lift its policy rate “at every monetary policy meeting, including the next one” in September.
Many market participants expect a rate rise that month.
June’s increase in the policy rate to 1% was another subject raised at the press conference, with Himino asked whether its effects could yet be assessed.
“We aren’t saying we’ll not take a single step until complete information becomes available,” he replied.
[Copyright The Jiji Press, Ltd.]
