Bank of Japan’s Junko Koeda Says Rate Hikes Must Continue

Junko Koeda, a board member of the Bank of Japan, said the central bank should continue raising policy interest rates in line with Japan’s economic activity, prices, and financial conditions. Her remarks indicate the Bank of Japan remains focused on normalizing monetary policy after years of ultra-low rates while taking a stronger role in combating inflation. The shift has potential implications for borrowing costs, bond yields, and broader domestic and global financial markets, although the source provides no additional details on timing, specific policy tools, or immediate market reaction.

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