Bank of Japan Deputy Governor Ryozo Himino said it would be appropriate for Japan to keep raising interest rates in line with improvements in the economy and prices. Speaking to business leaders in Kushiro, he noted that “risk and uncertainty will never disappear from the landscape for policymakers.” Despite three rate hikes so far, real interest rates remain very low as inflation stays strong. Himino stressed the need to “continually assess the balance of risks, both upside and downside, and respond in a timely and appropriate manner” to limit damage if conditions shift. On scaling back government bond purchases, he said a central bank’s balance sheet affects the economy through both assets and liabilities. Any adjustment, he added, should follow the principle that long-term rates are set by markets, with authorities providing predictability while keeping flexibility to safeguard stability.