Bank of Japan deputy governor stressed maintaining market confidence in inflation control

On May 26, Bank of Japan Deputy Governor Ryozo Hagami emphasized that in the recent sell-off of Japanese government bonds, timely adjustment of policies is crucial to maintaining the confidence of market participants. "Regarding monetary policy and long-term interest rates, we believe that it is very important to adjust the degree of monetary easing at an appropriate pace based on future economic, price and financial conditions, so as to maintain market confidence that inflation will be properly controlled." The speech seemed to imply that the Bank of Japan was open to raising interest rates in the near future. Officials such as Renzo Himami and Bank of Japan Governor Kazuo Ueda have recently stressed the need to maintain a responsible attitude towards financial markets, which are currently widely expected to raise interest rates at next month's meeting. Meanwhile, japanese prime minister haya takaichi last week subtly signaled a desire for policy stability at the bank of japan as she tries to cushion the economic impact of the iran war. "The Bank of Japan will strive to implement policies appropriately to maintain this market confidence and achieve price stability objectives in a sustainable and stable manner," Mr Hinomino said.