BOJ Deputy Governor: Underlying Inflation Rate Is Now Quite Close to the BOJ's 2% Target

Bank of Japan Deputy Governor Ryozo Himino said strong demand for artificial intelligence is driving capital expenditure and export growth. Underlying inflation is already quite close to the BOJ's 2% target, and underlying inflation is expected to approach a level consistent with the BOJ's target. Medium- to long-term inflation expectations continue to heat up. Financial conditions remain accommodative. Real interest rates remain low, and bank lending is growing at a rapid pace. Delaying policy adjustments could pose inflation risks and harm the economy. Upside risks to prices are high. Achieving price stability through appropriate monetary policy will help Japan achieve sustainable growth.