Key facts
- Bank of Japan Deputy Governor Ryozo Himino advocated for timely interest rate hikes.
- Himino warned that exceeding the 2% inflation target could harm the economy.
- He stressed increased vigilance regarding upside inflation risks.
- Deliberations on these matters should be part of every monetary policy meeting.
- Himino previously indicated a cautious approach in March 2026 due to Middle East conflict.
- He had also signaled potential rate hikes in January 2025, which were subsequently implemented.
Bank of Japan Deputy Governor Ryozo Himino stated on Thursday that raising interest rates in a timely manner is essential to prevent a future surge in inflation that would necessitate abrupt hikes. Himino emphasized that if underlying inflation deviates above the 2% target, it would adversely impact the economy, and greater attention should be paid to upside risks to prices than in the past.
He suggested that in-depth deliberations on these perspectives should be held at each monetary policy meeting. In contrast to his recent remarks, Himino had previously monitored the Middle East situation in March 2026, indicating a pause in rate hikes due to economic uncertainty. However, in January 2025, he had signaled that the board would discuss raising the benchmark rate at its upcoming meeting, a gathering where borrowing costs were subsequently increased.