In a speech in Kumamoto, BOJ Policy Board Member Koeda Junko (小枝 淳子) indicated that she favored continuing to raise interest rates while expressing the view that adjustments should be made in a timely manner without becoming excessively cautious.
BOJ Policy Board Member Koeda Junko (小枝 淳子) gave a speech in Kumamoto, expressing the view that she would not be excessively cautious about raising interest rates and emphasizing her stance of continuing to raise the policy rate.
The BOJ decided at its September monetary policy meeting to raise the policy rate to around 1.25%, and its next meeting is scheduled for the 29th and 30th of this month. Market interest in the timing of the next rate hike is growing.
Koeda said the neutral interest rate would be taken into account when deciding on rate hikes, and pointed out that the neutral rate was “considerably above 1%.” She also suggested that, in light of potential growth, it could be said to be “above 2%.”
Regarding the domestic economy, she said that “overall, it continues not to be bad,” while expressing the view that “broad-based price increases are continuing.”