MNI BRIEF: BOJ Will Hike If Economy, Prices On Track - Himino
MNI (TOKYO) - The Bank of Japan will continue to raise the 0.5% policy interest rate to adjust the degree of easy policy if the economy and prices move in line with the bank’s forecast, Deputy Governor Ryozo Himino said on Thursday.
“We will make efforts to manage monetary policy in an appropriate manner," Himino said at a forum in Tokyo, without providing details on timing.
Market players expect the BOJ to hike every six months, following last week's 25 basis points move higher, the first increase since July 2024 and the highest level since October 2008. (See MNI BOJ WATCH: Ueda Flags More Hikes, No Clear Timeline)
Himino said that real interest rates continue to remain in considerably negative territory after the rate hike and the Bank maintained an accommodative financial environment, supporting steady economic activity. The BOJ will decide on its policy stance based on the assessment on underlying inflation, which is largely moving at around 1.5%, below the bank’s 2% price target, he added.