Kumamoto, 15 October 2026 – Bank of Japan board member Junko Koeda said policymakers should not become overly cautious about raising interest rates, arguing that inflation risks remain tilted upwards while financial conditions are still accommodative. Her remarks reinforced expectations that Japan’s monetary normalisation is not finished.
Speaking to business leaders in Kumamoto, Koeda said the central bank should adjust rates in a timely manner as economic and price conditions evolve, while keeping the estimated range of the neutral rate in view. The message favoured a data-dependent path rather than a fixed schedule, but it placed greater weight on the cost of waiting too long.
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