BOJ Deputy Governor Sees Rate Hike Justified If Outlook Realized

Deputy Governor Ryozo Himino said the Bank of Japan will raise interest rates as long as inflation moves in line with the bank’s view, showing that the central bank’s stance is essentially unchanged despite the ructions in financial markets earlier this month.

The BOJ’s basic stance “is that it will examine the impact of market developments and the July rate hike,” Himino said in a speech to local business leaders in Yamanashi, central Japan, Wednesday. “If it has growing confidence that its outlook for economic activity and prices will be realized, it will adjust the degree of monetary accommodation.”