Bank of Japan Policy Board Member Koeda Junko (小枝 淳子) spoke in Kumamoto City, saying the BOJ should not be overly cautious about rate hikes and indicating that inflation risks were appreciable. Based on the current policy rate of 1.25%, she said the possibility of further hikes should be adjusted in a timely manner while monitoring economic and price conditions.
In a speech in Kumamoto City, Bank of Japan Policy Board Member Koeda Junko (小枝 淳子) said there would be no excessive caution about rate hikes and pointed out that inflation risks were appreciable. With the current policy rate at 1.25%, she indicated that further hikes would be necessary.
Regarding domestic economic conditions, she said the economy was generally not in poor shape, citing high corporate earnings and a pause in the deterioration of consumer sentiment.
She also explained that concerns about an economic slowdown had eased from before, supported by broad-based AI-related demand.