Business · Singapore Bureau
BOJ Deputy Governor Signals Push for Additional Rate Increases
Ryozo Himino has called for more aggressive monetary tightening as the Bank of Japan confronts inflationary pressures from Middle East-driven oil price volatility. Market participants are increasingly pricing in a rate rise at the central bank's September policy meeting.
LSN Singapore ·
The Bank of Japan's deputy governor Ryozo Himino has advocated for additional interest rate hikes to combat persistent price pressures, citing geopolitical risks to crude oil markets as a key concern. His remarks come amid growing expectations among financial markets that the BOJ will move to tighten monetary conditions at its upcoming September policy decision.
Himino pointed specifically to price risks emanating from elevated crude oil costs, which he attributed to ongoing tensions in the Middle East. These inflationary headwinds underscore the need for the central bank to continue its gradual normalization of policy rates, according to the deputy governor's latest comments.
Market participants have substantially increased their probability estimates for a BOJ rate hike in September, reflecting growing confidence that policymakers will take further action to address inflation concerns. The indication of support from senior BOJ leadership may reinforce market expectations as the central bank moves toward its next monetary policy review.
The remarks signal that Japan's central bank remains focused on balancing price stability against broader economic conditions as it unwinds its ultra-loose monetary stance adopted during the pandemic era.