Junko Koeda says inflation risks outweigh recession concerns, hinting at potential monetary policy shifts ahead of June meeting.
Bank of Japan Policy Board Member Junko Koeda stated monetary policy is appropriate to address inflation, which she sees as a materializing risk. She noted the risk of inflation overshooting outweighs recession concerns but emphasized the central bank will monitor price and growth dynamics before its June meeting.
Koeda’s remarks follow the BoJ’s long-standing ultra-loose policy, including quantitative easing, aimed at achieving a 2% inflation target. Recent data has shown inflationary pressures persisting, contrasting with earlier low-inflation environments that prompted aggressive stimulus.
The USD/JPY pair showed minimal movement, trading at 158.88, down 0.03% on the day at the time of reporting.