Bank of Japan Deputy Gov. Ryozo Himino says he sees a risk that inflation could accelerate beyond the central bank¡¯s 2% target, explaining to government officials the rationale for raising interest rates earlier this week.
¡°We are seeing the pass-through of higher costs into prices in business-to-business transactions proceed at a somewhat faster pace, and we believe this could eventually spread to broader price increases across a wide range of consumer goods and services,¡± Himino said in response to questions in parliament Friday. ¡°As you pointed out, there is a risk that underlying inflation could accelerate beyond the Bank¡¯s 2% price stability target.¡±
Himino was the first BOJ official to speak publicly after the bank raised its benchmark rate to the highest in 31 years on Tuesday. Himino reiterated the BOJ¡¯s commitment to keep raising rates in response to the economy and inflation without offering any clear hints on the potential timing.
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