Bank of Japan board member Junko Koeda signaled support for raising benchmark interest rates, the latest indication that momentum is building for a move as early as next month.
¡°I see some possibility that underlying inflation may exceed 2% looking ahead,¡± Koeda said Thursday in a speech to local business leaders in Fukuoka Prefecture. ¡°I therefore believe it is reasonable for the Bank to raise the policy interest rate at an appropriate pace to address high inflation while also considering the trade-offs for the economy.¡±
Koeda was among those who voted with the majority in favor of holding settings steady at the last policy meeting on April 28, in a 6-3 decision that was the biggest split under Kazuo Ueda¡¯s governorship. While Koeda didn¡¯t specify a preferred timing for the next move, her comments may support speculation over a hike the next time authorities decide policy on June 16.
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