Bank of Japan Official Warns Against Excessive Caution on Rate Hikes

A Bank of Japan policymaker advocated for continued interest rate hikes if economic targets are met.

Bank of Japan board member Junko Koeda advised the central bank against being overly cautious about raising interest rates. She stated that borrowing costs should be adjusted if economic activity and inflation align with forecasts. While declining to commit to a specific schedule, Koeda emphasized the importance of moving rates toward neutral levels over time.

• Policy flexibilityKoeda refrained from specifying whether borrowing costs would be raised at the upcoming rate setting meeting.
• Economic alignmentThe central bank plans to proceed with monetary tightening if growth and price trends meet expectations.