Himino reaffirms the Bank of Japan’s rate hike path but ties timing to Middle East risks and economic impact.
Bank of Japan Deputy Governor Ryozo Himino reiterated the central bank’s commitment to raising interest rates, citing ongoing adjustments to monetary policy. The timing and pace of hikes will depend on how Middle East developments affect Japan’s economy and inflation outlook, he said during Diet testimony.
Himino noted that rising long-term interest rates reflect global inflation concerns and emphasized the BOJ’s focus on bond market conditions as it reviews tapering plans. Finance Minister Katayama echoed concerns, pledging to monitor price impacts and respond to protect households.
The BOJ’s stance remains data-dependent, with no fixed timeline for further tightening. Market participants are watching for signs of how geopolitical risks may alter the central bank’s baseline scenario.