Bank of Japan Deputy Governor Ryozo Himino said Thursday that the central bank will continue raising its benchmark interest rate while adjusting monetary support to economic and price developments. Speaking at a financial conference in Tokyo, Himino reaffirmed the BoJ’s strategy of normalizing monetary policy after years of ultra-low rates, emphasizing that the pace and timing of future increases will depend on wage growth, inflation and other economic data. The BoJ has raised rates twice in 2024, taking its policy rate to 0.5% by February 2025, and markets widely expect another increase later this year, although the timing is uncertain. A prolonged hiking cycle could support the yen by making Japanese assets more attractive, while Japanese government bond yields have risen, with the 10-year yield reaching 1.4% in early March. Higher rates would increase borrowing costs for Japanese households and businesses but improve returns on savings. Investors will monitor upcoming economic releases and the BoJ’s next policy meeting, scheduled for April 24-25, 2025.