BOJ official urges timely rate hikes amid inflation risks
Bank of Japan board member Junko Koeda warned against being overly cautious on rate hikes. She noted considerable upside risks to inflation and estimated the neutral rate above 1 percent.
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The Bank of Japan should avoid excessive caution on rate hikes as upside price risks mount, board member Junko Koeda said on Thursday. The remarks signal potential for near-term borrowing cost increases from the current 1.25% rate. Koeda noted the neutral rate sits well above 1%, pointing to room for further policy tightening.
