Bank of Japan Deputy Governor Himino stated Tuesday that market participants view recent increases in long-term interest rates as a response to global inflation concerns. He emphasized that the central bank will carefully evaluate the timing and pace of policy adjustments while monitoring how developments in the Middle East impact Japan’s economy and price stability, and assessing the likelihood of achieving the baseline economic scenario.
Key quotes
Market views rises in long-term interest rates reflect global concerns about inflation.
BoJ will conduct monetary policy appropriately to achieve inflation target stably, sustainably.
Will access bond market situation, market functionality while listening to market participants as we review bond tapering plans.
Our economic outlook can change depending on Middle East situation.
BoJ will continue to raise policy rate, adjust degree of monetary accommodation according to economic activity, prices, financial conditions.
Will consider timing and pace of adjustment while monitoring how Middle East developments affect Japan economy, price and examining likelihood of realising baseline scenario.
Market reaction
At the time of press, the USD/JPY pair is up 0.04% on the day at 158.98.
(This story was corrected on May 26 at 01:55 GMT to say that at the time of press, the USD/JPY pair is up 0.04% on the day at 158.98, not 159.98.)