BOJ’s Himino signals readiness to raise borrowing costs

By Leika Kihara TOKYO, Oct 21 (Reuters) Japan s underlying inflation is quite close to the central ​bank s 2% target and financial ‌conditions remain loose, Deputy Bank of Japan Governor Ryozo Himino said on Wednesday, signalling readiness to raise borrowing costs. While ‌rising ​fuel and raw ⁠material costs are ⁠pushing up prices, brisk global AI demand is also putting upward pressure on prices by boosting ​exports and capital expenditure, Himino told parliament. Given medium- and long-term ⁠inflation expectations continue ⁠to heighten, underlying inflation is ​quite close to 2% and will ​likely converge to levels consistent with ‌our price target, Himino said. Even after last month s rate hike, financial conditions remain accommodative as seen ⁠in still-low real borrowing costs and strong growth in bank lending, he said. Given ⁠that ‌inflation risks are high, ⁠delaying necessary adjustment to monetary ​support ‌could materialise such risks ​and hurt ⁠the economy in the long ru