On May 26, Bank of Japan Deputy Governor Noriyuki Nishimura emphasized the importance of timely policy adjustments to maintain market participants' confidence amid recent sell-offs in Japanese government bonds. Nishimura stated on Tuesday, "Regarding monetary policy and long-term interest rates, we believe it is crucial to adjust the degree of monetary easing at an appropriate pace in response to future economic, price, and financial conditions, thereby maintaining market confidence that inflation will be adequately controlled." His remarks seem to suggest that the Bank of Japan is open to interest rate hikes in the near future. Nishimura, along with BOJ Governor Kazuo Ueda and other officials, has recently stressed the need for a responsible approach to the financial market, as the market widely anticipates a rate hike at the BOJ's meeting next month. Meanwhile, Japanese Prime Minister Sanae Takaichi subtly signaled last week her hope for the BOJ to maintain policy stability, as she seeks to mitigate the economic impact of the war in Iran. Nishimura stated, "The Bank of Japan will strive to implement policies appropriately to maintain this market confidence and achieve price stability goals in a sustainable and stable manner."