BOJ Deputy Governor Himino Signals Readiness to Lift Interest Rates

In a parliamentary address, Deputy Bank of Japan Governor Ryozo Himino observed that core inflation is close to the BOJ's 2% target and that financial conditions are still accommodative after the latest rate increase. He pointed to rising fuel and raw material prices, as well as robust global demand for artificial-intelligence-related exports and capital spending, as factors pushing prices higher. Himino emphasized that medium- and long-term inflation expectations are climbing, suggesting inflation will likely converge to the target level. He warned that delaying additional monetary tightening could materialise inflation risks and harm the economy over the long run, underscoring the need for continued rate hikes.