BoJ releases text of deputy governor Ryozo Himino's speech

BoJ releases text of deputy governor Ryozo Himino's speech

The Bank of Japan (BOJ) has released the text of Deputy Governor Ryozo Himino's speech, which provides valuable insights into the central bank's monetary policy. The speech, delivered on September 2, 2025, comes amidst growing expectations of rate hikes by the BOJ and mounting political uncertainty in Japan [1].

Himino's speech may offer more clarity on the BOJ's policy path, which has been a topic of speculation in the financial markets. The deputy governor's remarks are particularly significant as they coincide with the 10-year government bond auction, a key test of investor appetite for Japanese government bonds [1].

Investors have been cautious at recent auctions, with demand for 10-year bonds drawing softer demand than the 12-month average. The weak demand has been attributed to the BOJ's reduction in bond purchases and global concerns about government spending [1]. As a result, Japan's 10-year bond yield has risen to multi-year highs, reaching 1.625% on Monday afternoon before the auction [1].

The deputy governor's speech may influence the bond market before the auction. Recent comments by Governor Kazuo Ueda suggest that a tight labor market could keep upward pressure on wages, which may lead to further rate hikes [1]. Overnight index swaps indicate a 70% chance of a move by the end of the year [1].

Additionally, the speech will be closely watched for any insights into the political landscape. The Liberal Democratic Party (LDP) is expected to review its election performance on the same day, which could inform lawmakers about potential leadership changes within the party [1].

Investors are likely to make decisions based on the outcomes of Himino's speech and the LDP's election review. The uncertainty surrounding the LDP's leadership could impact market sentiment and influence investment decisions [1].

In conclusion, Deputy Governor Ryozo Himino's speech offers a crucial opportunity for investors to gain insights into the BOJ's monetary policy and the political climate in Japan. The speech, combined with the upcoming bond auction, will provide valuable information for market participants to navigate the current financial landscape.

References:
[1] https://theedgemalaysia.com/node/768937