BoJ's Himino says upside inflation risks remain high, warning that delays in adjusting monetary policy could allow inflation risks to materialise and harm the economy.

• Financial conditions remain accommodative, with real interest rates low and bank lending expanding rapidly.
• Medium- and long-term inflation expectations continue to rise.
• Underlying inflation is nearing the BoJ's 2% target and is expected to converge towards levels consistent with the target.
• Strong AI demand is boosting domestic capex and exports.
• High upside risk to inflation.
• Financial conditions still loose after rate hikes.

Comments of this kind from a BoJ board member fit the established pattern of the bank's incremental normalisation: officials signal concern about upside inflation risks well in advance of acting, and the historical sequence has run from hawkish commentary, to guidance adjustments, to the hike itself, often with market pricing moving ahead of the decision. The distinction worth drawing is whether the remarks reflect the governor's centre of gravity or a more hawkish member pressing the case, since in past tightening phases it has been the consensus language at subsequent meetings rather than individual speeches that set the timing. The substance here, loose financial conditions persisting after prior hikes, rising medium and long-term inflation expectations, and underlying inflation converging on target, is the canonical argument for a further rate increase rather than for a pause, and markets have typically read this framing as pulling the next hike forward rather than ruling one in. The mechanism runs through the front end of the JGB curve and the yen rate differential, with rate-sensitive bank equities historically tracking the hawkish read. Worth watching are whether other board members echo the delay-risk framing, the wording around the output gap and underlying inflation in subsequent communications, and the wage and services price data that have been the bank's stated gating factors. The AI-driven capex reference is the newer element, adding a structural demand argument to the usual wage-price case.