TOKYO (March 2): Bank of Japan deputy governor Ryozo Himino said on Monday that the central bank is expected to gradually shift to a more neutral monetary policy stance by continuing to raise interest rates. In a speech, Himino said the impact of past interest rate hikes on Japan's economy appears to be limited so far. While underlying inflation is rising steadily, it was still premature to assert it has reached 2% for certain, Himino said. He also said the inflation gap, or the difference between underlying inflation and the BOJ's 2% inflation target, was slightly negative now but was likely to approach zero in the future. "This would suggest that, while the Bank's policy remains somewhat accommodative, it should gradually shift to a more neutral stance through moderate policy rate hikes," he said in a speech.

Source: The Edge Markets March 02, 2026 03:15 UTC