BOJ Himino Hints at Rate Hike in Sept.

Saitama, Aug. 28 (Jiji Press)–Bank of Japan Deputy Governor Ryozo Himino has indicated the possibility that the central bank will raise interest rates in September. At a press conference in the city of Saitama, near Tokyo, on Thursday, Himino said the BOJ will consider whether to raise its policy interest rate “at every monetary policy meeting, including the next one” in September. Many market participants expect a BOJ rate hike in September. “We need to be even more mindful of upside risks to prices, given that the underlying inflation rate is approaching (the BOJ’s inflation target of) 2 pct,” Himino said. “We hope to steer monetary policy appropriately to bring the underlying inflation rate to 2 pct.” “We aren’t saying we’ll not take a single step until complete information becomes available,” Himino said in response to a question whether it was too soon to assess the effects of the June rate hike to 1 pct. On a remark by Governor Kazuo Ueda in July indicating the possibility of accelerating the pace of policy rate increases, Himino said, “I agree with that view.” END [Copyright The Jiji Press, Ltd.]