MNI BRIEF: BOJ Himino Sees Price Upside, Downside Risks
MNI (TOKYO) - Bank of Japan Deputy Governor Ryozo Himino said on Tuesday upside and downside risk to prices exist, although inflation is on track, and the BOJ must manage this risk in an appropriate manner
Himino noted policymakers will make a policy rate decision next week based on additional data to be made available at the meeting, he told reporters in Yokohama City.
“It is important for the BOJ to judge the timing of rate hike in an appropriate manner. But it is difficult for the bank to judge when the appropriate timing would be,” Himino said.
While import prices on a dollar basis fell, on a yen basis they rose month-on-month and the BOJ needs to monitor their impact on the inflation rate carefully, he continued.
Himino said that the BOJ is focused on the balance of U.S. economic policies, their schedule, and their impact on global financial markets.
“The U.S. economy is likely to remain solid. That’s a main scenario. But we would like to examine the view after the speech by the new U.S. president on Jan. 20 in addition to U.S. CPI data,” Himino added.
Wage hikes at firms are strong, he argued. "That’s a main scenario but the policymakers want to discuss the outlook for monetary policy through broad information until the meeting," he noted. (See MNI POLICY: BOJ Sees Rice, Labour Driving Stronger CPI)