MNI BRIEF: BOJ's Koeda Sees Underling CPI Moves Toward 2%

Newly appointed Bank of Japan board member Junko Koeda said on Wednesday that underlying inflation is moving toward the 2% price target and the bank is focused on achieving it in a stable and sustainable manner, but she did not give any indication on the pace or timing of the next hike. 

“Real interest rates are at considerably low levels,” she told reporters, declining to elaborate on the outlook for monetary policy.

Koeda said she will carefully monitor and discuss various data at the next policy-setting meeting scheduled between April 30 and May 1, when asked about the prospects for an additional hike. 

She also highlighted the high level of uncertainty surrounding the economic and inflation outlook, citing potential risks from U.S. trade policies, supporting the BOJ’s cautious approach to gradually raising interest rates while monitoring risk factors.

“I want to monitor how the economy reacts to the past rate hikes as there is a time lag that the impact of the policy rate affect economic activity and prices.”

Koeda refused to comment on the recent rise in long-term interest rates.