BoJ Deputy Governor Himino says believe the BOJ should continue to raise the policy interest rate and adjust the degree of monetary accommodation in accordance with developments in economic activity, prices and financial conditions

• Must be mindful of upside price risk more than ever before.
• Accomodative monetary condition will be positive for the economy.

Deputy governors in the BoJ structure have historically been used to signal continuity of the policy line rather than to break new ground, so remarks of this kind tend to confirm the board's existing normalisation bias rather than re-price the path on their own. The formulation here is the standard conditional tightening language the bank has used through its hiking phases: rates rise in line with activity, prices and financial conditions, which keeps the timing of the next move data-dependent and leaves the terminal level unanchored. The notable element is the emphasis on upside price risk, phrasing that in past BoJ communications has preceded an acceleration of the hiking cadence when followed by similar language from the Governor and the more centrist board members. The transmission channel runs through the front end of the JGB curve and the yen via rate differentials against the Fed and ECB paths; verbal reinforcement without a date tends to produce only modest, often fading moves, with sustained repricing historically requiring the summary of opinions, the outlook report, or the meeting itself. Worth noting is whether this language is echoed across the speaker roster in the coming days, since clustered hawkish commentary from multiple board members has been the more reliable tell of an imminent move than any single speech. As commentary rather than a decision, the signal is directional.