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2026-05-26 09:58:30
[Bank of Japan Deputy Governor: Still Committed to Raising Interest Rates, But Timing Depends on the Impact of the Middle East Conflict] (1) Bank of Japan Deputy Governor Ryozo Himino stated that the central bank remains committed to further interest rate hikes, but the timing and pace will depend on the economic impact of the Middle East conflict. (2) He told a parliamentary committee that given the current extremely low real interest rates, the central bank will continue to raise policy rates and adjust the degree of monetary easing according to the economic, price, and financial situation. He did not disclose the specific timing of the next rate hike, stating that the central bank will monitor how the situation in the Middle East affects the Japanese economy and prices. (3) As more policymakers become increasingly wary of the possibility that rising oil prices could accelerate inflation, many economists and investors expect the Bank of Japan to raise interest rates at its June meeting. The recent sharp rise in Japanese government bond yields reflects market concerns that the central bank is lagging behind in controlling inflation. Himino stated that the central bank will ensure market credibility through proper monetary policy management and the stable achievement of its price targets.
