Business · Economy · 1 hr ago
BOJ board member urges against excessive caution on rate hikes
Bank of Japan board member Junko Koeda urged the central bank not to be overly cautious about raising interest rates as inflation risks persist.
She spoke to business leaders in Kumamoto, southern Japan, ahead of the bank’s Oct.
29-30 meeting.
The BOJ raised its main rate to 1.25% in September, its highest level in 31 years.
A weak yen and higher costs for imported goods and raw materials are adding to price pressures.
Koeda said inflation across a wider range of consumer goods suggests domestic price increases are becoming more established, near the bank’s 2% target.
She said Japan’s still-easy financial conditions leave room for further rate increases if inflation continues and economic activity remains steady.
The BOJ will review new growth and inflation forecasts at its meeting, while markets await clues on when rates may rise again; the decision will depend on data including wages, inflation and consumer spending.
Bank of Japan board member Junko Koeda said the central bank should not be overly cautious about raising interest rates.
She said Japan’s economic and financial conditions still allow further monetary tightening.
The BOJ’s main interest rate is 1.25%, after a September increase to its highest level in 31 years.
Koeda cited persistent inflation risks, a weak yen and rising raw-material costs as factors supporting vigilance.
The BOJ is due to meet on October 29 and 30 and issue updated growth and inflation forecasts.
- Who
- Bank of Japan board member Junko Koeda.
- What
- She urged the BOJ not to be overly cautious about raising interest rates.
- When
- Thursday, October 15, 2026.
- Where
- Kumamoto, in southern Japan.
- Why
- Inflation risks remain, while a weak yen and higher raw-material costs are adding price pressure.
This story does not have two clearly opposing sides.
The BOJ raised its main interest rate to 1.25%, its highest level in 31 years.
Koeda spoke to business leaders in Kumamoto and warned against excessive caution on rate increases.
The BOJ is scheduled to meet and issue updated growth and inflation forecasts.
- Board member
- Junko Koeda
- Current main interest rate
- 1.25%
- Rate increase
- September; highest level in 31 years
- Next BOJ meeting
- October 29 and 30
- Inflation target
- 2%
3 sources
What people are saying
the central bank should adjust interest rates at the appropriate time, taking into account developments in the economy and prices and estimates of the neutral interest rate
the continuation of easy financial conditions, along with significant risks of higher prices, means the bank should not hesitate excessively in making monetary tightening decisions