BoJ Deputy Governor Himino says won't comment on market expectations regarding BoJ rate hike moves, adds BOJ will look at likelihood of its scenario and risks including Middle East conflict, AI demand, FX impact, in determining pace and timing of hikes
BOJ officials reaffirmed plans to normalize interest rates to stabilize 2% inflation, looking past soft GDP data while monitoring Middle East risks, AI demand, and FX pressures.
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Says: We believe we can stabilise underlying inflation at 2% with appropriate policy moves. We will debate at each meeting desirable pace and timing of rate hikes to stabilise underlying inflation around 2%. Weak GDP data is somewhat worrying, but likely due to technical factors, so not enough to change his view regarding an economic outlook. Could speed up rate hikes if financial conditions remain too loose.
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