Overview
- Koeda said interest rates should keep rising to prevent future distortions, pointing to underlying inflation around 2% and tight labour conditions.
- She called for a predictable plan to normalise the BOJ’s balance sheet, including reassessing the size and composition of its assets and liabilities.
- She said policymakers will closely track wage and price setting, foreign‑exchange movements, and import prices to judge whether expectations remain anchored.
- She warned that elevated rice and broader food costs could generate second‑round effects and flagged US tariff policy as a risk to Japan’s outlook.
- The policy rate stands at 0.5%, and she has voted to keep it unchanged at each of the five meetings since joining the board in March.