BOJ to keep raising rates if economy on track: deputy governor

Negative real interest rates 'not normal' if deflation factors disappear

The Bank of Japan raised its policy interest rate to 0.5% from 0.25% last week, expecting wages to continue rising and inflation to remain stable around its 2% target. © Reuters

January 30, 2025 18:56 JST

TOKYO (Reuters) -- Bank of Japan Deputy Gov. Ryozo Himino said on Thursday that the central bank will continue to raise interest rates if the economy and prices move in line with the bank's forecasts.

In a speech, Himino also said it was "not normal" for Japan's inflation-adjusted, real interest rates to remain clearly negative for a prolonged period if shocks to the economy or factors that cause deflation disappear.