Key Facts
• September 2: BOJ Deputy Governor Ryozo Himino addressed U.S. tariff impacts in Kushiro.
• If tariff effects remain minimal, it could support a “rate hike direction.”
• Himino noted difficulty in determining the timeline for assessing tariff impacts.
• BOJ has no concrete plans to begin selling ETFs or REITs.
• Himino highlighted global economic uncertainties and downside risks.
• Inflation rate is “close to 2%,” but specifics were not disclosed.
• U.S. Federal Reserve faces pressure from former President Trump on monetary policy.
• Himino emphasized central bank independence and accountability for long-term currency trust.
• Current inflation is driven more by supply-side factors than demand-side.
• Himino stated supply shocks complicate policy decisions compared to demand shocks.
• Himino’s remarks on tariffs led to yen depreciation in forex markets.
• Economist Shota Mori predicts low likelihood of rate hikes in October BOJ meeting.
Summary
BOJ Deputy Governor Ryozo Himino discussed the potential impact of U.S. tariffs during a press conference in Kushiro, Hokkaido. He stated that if the effects of tariffs remain limited, it could support a “rate hike direction,” though determining the timeline for assessment remains challenging. Himino also highlighted global economic uncertainties and inflation nearing 2%, while avoiding specific figures. He emphasized the importance of central bank independence and accountability in maintaining currency trust. Current inflation is attributed to supply-side factors, complicating policy decisions compared to demand-driven shocks. Himino’s comments on tariffs caused the yen to weaken in forex markets. Economist Shota Mori noted that the BOJ’s stance remains cautious, with a low probability of rate hikes in the October meeting.
