BoJ's Himino says upside inflation risks remain high, warning that delays in adjusting monetary policy could allow inflation risks to materialise and harm the economy.
Himino warned that inflation risks remain high as inflation expectations rise and financial conditions remain accommodative; strong AI demand is boosting domestic investment and exports.
News detail
Financial conditions remain accommodative, with real interest rates low and bank lending expanding rapidly. Medium- and long-term inflation expectations continue to rise. Underlying inflation is nearing the BoJ's 2% target and is expected to converge towards levels consistent with the target. Strong AI demand is boosting domestic capex and exports. High upside risk to inflation. Financial conditions still loose after rate hikes.
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