By Leika Kihara
KUSHIRO, Japan (Reuters) -Bank of Japan Deputy Governor Ryozo Himino said on Tuesday it would be appropriate to continue raising interest rates in line with improvements in the economy and prices.
Warning that uncertainty surrounding the global economic outlook remained high, Himino said the central bank must focus on the possibility that the impact of U.S. tariffs on Japan’s economy could be bigger than expected.
He said underlying inflation remained short of the BOJ’s 2% target, but will likely gradually accelerate towards that level.
“Risk and uncertainty will never disappear from the landscape for policymakers,” Himino said in a speech to business leaders in Kushiro, northern Japan.
“We must continually assess the balance of risks, both upside and downside, and respond in a timely and appropriate manner to ensure that, even if conditions deviate from the baseline scenario, the damage is well contained,” he said.
(Reporting by Leika Kihara; Editing by Himani Sarkar and Shri Navaratnam)
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