Overview
- Deputy Governor Ryozo Himino said raising interest rates in a timely way will help prevent a later spike in inflation that would force abrupt, larger rate increases.
- He warned that underlying inflation is approaching the BOJ’s 2 percent target and must be stabilised around that level to avoid harming the economy.
- Himino identified a weak yen as a key upside risk that could push up import prices and speed overall inflation, and said exchange-rate effects will factor into policy decisions.
- He described the current stance as still accommodative and called for in-depth, meeting-by-meeting deliberations using economic, price, and financial-condition data to guide any shift.
- The remarks, delivered to business leaders in Urawa and reported by Channel NewsAsia, signal possible earlier tightening that could redirect assets toward growth investment while raising borrowing costs for households and firms.