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BOJ Deputy Governor Himino Signals Need for Continued Rate Hikes Due to Price Risks

2 sources · Japan

Who reported this

  • Asahi Shimbun Japan · Centre-left · Asahi Shimbun Company (family and employee held)
  • Kyodo News Japan · Centre · Non-profit publisher cooperative

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  • Centre-left
  • Centre
  • Centre-right
  • Right
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Every source for this story reports from Japan.

Bank of Japan Deputy Governor Ryozo Himino stated on Thursday that the central bank should continue to raise its key policy rate. Speaking at a lecture in Saitama City, Himino emphasized that there is a need for greater awareness than ever before regarding the risk of prices rising above the 2 percent target. He identified several factors contributing to this upside risk, including the pass through of higher crude oil prices, increased semiconductor costs driven by AI demand, and the depreciation of the yen. Himino noted that consumer prices are expected to remain above 2 percent in the second half of the fiscal year. He suggested that gradual policy adjustments could prevent the need for sudden rate hikes, which would be more favorable for small businesses, mortgage borrowers, and public finances. Market observers now anticipate a potential additional rate hike during the September monetary policy meeting.

How each side framed it

Centre-left
The center-left outlet provided more granular detail on the specific economic drivers of inflation and the potential impact of rate hikes on borrowers and the state.
Centre
The center outlet focused on the direct call for rate hikes in alignment with price movements.

Sources

100% of the statements in this article were traced back to the source articles listed above.