Bank of Japan Deputy Governor Himino said policymakers should raise rates in a timely manner rather than risk a sharper increase later, citing a weak yen and rising chip prices as inflation risks. Separately, the Philippine central bank lifted its key rate 25 basis points to 5 per cent, the third consecutive hike since April, with inflation at 6.2 per cent still above target.
Bank of Japan Deputy Governor Ryozo Himino indicated on Thursday that the central bank should raise interest rates in a timely manner to avoid a more abrupt tightening later. Speaking in Urawa, Himino warned that inflation running above the 2 per cent target would harm the economy, identifying a weak yen and rising chip prices from artificial intelligence demand as upside risks to the price outlook.[1]
Himino argued that the central bank is still pressing on the accelerator with its accommodative policy stance and needs to ease off before financial conditions become excessively loose. Financial markets are currently pricing in a near-certain rate increase at the Bank of Japan's upcoming policy meeting in September.[1]
Separately, the Bangko Sentral ng Pilipinas raised its target reverse repurchase rate by 25 basis points to 5 per cent, marking its third consecutive hike since April. The move brings total tightening to 75 basis points and pushes the benchmark to its highest level since June 2025. Although inflation eased to 6.2 per cent in July, the central bank noted it remains above the target range, prompting further action despite second-quarter economic growth slowing to 2.3 per cent.[2]
