Bank of Japan Deputy Governor Ryozo Himino said timely interest-rate increases could prevent an inflation spike that might force abrupt hikes later. With underlying inflation approaching the BOJ's 2% target, he said policymakers should pay greater attention to upside price risks and examine them at every monetary policy meeting. Himino also said tighter financial conditions could direct assets more efficiently toward investments with growth potential, while a weak yen could accelerate inflation. The BOJ will assess exchange-rate effects alongside economic and price developments and financial conditions when guiding policy.