BOJ policymaker Junko Koeda calls for rate hikes amid inflation risks
financeMay 21, 20261215
Bank of Japan board member Junko Koeda urged the BOJ to raise interest rates "at an appropriate pace" in remarks in Fukuoka on May 21. She warned that inflation could overshoot because of war-driven supply shocks and said the central bank must be ready to tighten policy to contain those risks. Koeda's comments come as the BOJ weighs exiting decades of ultra-loose policy after years of negative or near-zero interest settings. A shift toward higher rates would lift the yen and raise Japanese borrowing costs, with ripple effects for global bond markets and Japan's import-driven inflation.
