Bank of Japan (BoJ) Deputy Governor Ryozo Himino provided further insights on Tuesday regarding Japan’s inflation trends and the central bank’s future monetary policy.
Himino noted that, on a yen-denominated basis, import prices have seen a significant year-on-year rise. However, he emphasized that it remains unclear whether inflation risks are skewed to the upside or downside.
Addressing the potential for a rate hike in January, Himino clarified that the BoJ does not rely on a specific “checklist” to determine its decisions. He stressed that when the time is right, the central bank will adjust its policy without delay.
Regarding the economic outlook, Himino expressed growing confidence that Japan’s economy and prices will align with the BoJ’s forecast. He further stated that short-term fluctuations in global yields will not influence the BoJ’s policy decisions.
On the U.S. economy, Himino shared his expectation of sustained firm growth, though he indicated a need to closely analyze the new administration’s policy measures, particularly following President Trump’s inaugural address.
Lastly, Himino shared his projection for strong wage growth in 2024, although he emphasized the importance of monitoring information leading up to the BoJ’s policy meeting next week.
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