BOJ’s Himino Signals Timely Rate Hikes as Inflation Risks Build

Urawa, 27 August 2026 – Bank of Japan Deputy Governor Ryozo Himino has sharpened the case for further monetary tightening, saying the central bank must raise interest rates at the right time as inflation risks increasingly tilt to the upside. His remarks add urgency to the policy debate without committing officials to a move at the September meeting, leaving investors to weigh persistent price pressures against uncertainty surrounding global growth and energy markets.

Speaking in Saitama Prefecture, Himino said each policy decision would continue to depend on a detailed assessment of economic activity, prices and financial conditions. The emphasis on timely action matters because Japan’s underlying inflation rate is moving closer to the central bank’s 2% price-stability target while the policy stance remains accommodative. The bank currently guides the uncollateralised overnight call rate at around 1.0%, following an increase in June that took borrowing costs to their highest level in roughly 31 years.