Overview

• Deputy Governor Ryozo Himino said the Bank of Japan should keep raising interest rates if its baseline outlook holds.
• He cautioned that global uncertainty remains high and that the impact of U.S. tariffs could be larger than expected.
• The BOJ expects underlying inflation to eventually stabilize around the 2% target after a temporary stall linked to slower growth.
• Himino offered no timetable for further tightening, saying forecasts will be reviewed without preconception and risks reassessed continuously.
• Tight labor markets and wage gains could lift prices, while weaker global demand and higher U.S. levies may exert downward pressure.