BoJ Deputy Governor Himino says to raise rates if economic outlook is met, adds the goal is to maintain price stability by avoiding excessive inflation and deflation, thereby supporting sustainable economic growth

• Impact of rate hikes has been limited so far.

The comments from BoJ Deputy Governor Himino indicate a conditional approach to rate hikes based on economic performance, emphasizing a balance between inflation and deflation to ensure sustainable growth. This reinforces market expectations that any rate increase will depend on achieving specific economic targets, suggesting a gradual and measured approach to monetary tightening. The limited impact of prior hikes implies that the market may need to reassess the effectiveness of such measures in combating inflation.