Bank of Japan board member Junko Koeda has warned against too much caution over raising interest rates, in comments that suggest the central bank is firmly on track to hike borrowing costs again in the coming months after accelerating the pace of normalization.
“Given that there have been considerable upside risks to prices in addition to continued accommodative financial conditions, the bank should not become overly cautious about raising the policy interest rate,” Koeda said Thursday in a speech to local leaders in the city of Kumamoto.
The yen was largely unchanged after her speech and news briefing at around ?158 per dollar Thursday afternoon. That was still stronger compared with ?158.95 overnight following data that showed an acceleration of inflation in the United States.
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