The comments highlight that the BOJ isn’t ruling out raising borrowing costs this month, with most BOJ watchers seeing it coming in either January or March. Himino also said there are various risks both for the upside and downside, and echoed Governor Kazuo Ueda by saying momentum for this year’s wage hikes and US economic policy under a new administration warrant attention.
Bank of Japan Deputy Governor Ryozo Himino signalled the possibility of an interest rate hike next week by saying that the board will be discussing it, making it clear that the option is on the table.
“In conducting monetary policy, it is difficult but essential to judge the right timing,” Himino said Tuesday in a speech to local business leaders in Yokohama. “The board will have discussion to decide whether to raise the policy rate or not, based on the outlook to be compiled” at the monetary policy meeting between Jan 23-24, he said.
