Latest news with #JunkoKoeda
Japan Times
09-07-2025
- Business
- Japan Times
New board member hints at possible raising of BOJ's price outlook
One of the Bank of Japan's newest board members alluded to a possible upward revision to the central bank's inflation view this month, an outcome that would keep open the possibility of another rate increase this year. "Inflation for rice and food-related items has been stronger than expected,' Junko Koeda said Monday in her first media interview since joining the board in March. "I'm closely watching potential secondary effects on underlying inflation from rice, which is a staple food.' Koeda spoke before U.S. President Donald Trump announced a new tariff level of 25% on Japan. The board member stressed there are high economic uncertainties stemming from the U.S. levies as she underscored the need to assess incoming data before considering any policy moves. "Given ongoing high uncertainties, it's inappropriate to talk about a specific timing for the next rate hike,' Koeda said. "We need to decide by closely looking at the economy, inflation and financial markets without missing a sign of change.' BOJ Gov. Kazuo Ueda's board delivers its next policy decision on July 31 and will update its quarterly economic outlook. With a stand-pat decision widely expected, the main focus is on whether the central bank will raise its inflation forecasts, a key factor in mulling the likely timing of rate hikes once there's more clarity over U.S. tariffs. Stay updated on Japan's rice crisis. Quality journalism is more crucial than ever. Help us get the story right. For a limited time, we're offering a discounted subscription plan. Unlimited access US$30 US$18 /mo FOREVER subscribe NOW Trump has now set Aug. 1 as the new day when higher "reciprocal tariffs' kick in, thereby giving countries another three weeks or so to reach trade deals. Japan's key inflation gauge showed an acceleration to 3.7% from a year earlier in May, the highest level among Group of Seven nations. Price growth has remained at or above the BOJ's 2% target for more than three years with the cost of rice among the drivers recently. The nation's staple food surged 102% in May, the fastest pace in half a century. The central bank currently expects the cost of living to rise 2.2% in the year ending March 2026, lower than 2.4%, the median estimate of private economists. "There are both upside and downside risks for inflation,' Koeda said, echoing Ueda's remarks last month. The comments suggest a potential change in the BOJ's risk balance assessment, after the central bank's April outlook report mentioned only downside risks for prices in that section. Koeda assumed her five-year term on March 26 in a career shift from her position as an economics professor at Tokyo's Waseda University. She became known among BOJ watchers after the BOJ's think tank published a paper of hers in 2018, highlighting positive aspects of scrapping the negative interest rate policy. The paper was perceived as a hint at coming changes and contributed to her reputation for leaning toward hawkishness. Koeda is also known for her research on the BOJ's balance sheet and Japan's debt market. While the central bank has trimmed its bond buying over the last year, it decided last month to slow down its withdrawal from the market after super-long bond yields hit a record high in May in a sign of instability. Despite the central bank's move, the market continues to be hit by volatility, with 30-year bond yields rising Tuesday on concerns over fiscal policy after an upper house election on July 20. "Long-term interest rates should be determined by financial markets in principle,' Koeda said. The BOJ should step into the market only "in exceptional cases when yields surge in an abnormal manner.' At 49, Koeda is the youngest of nine members on the board and her presence marks the first time it has had two female members, a sign of progress in raising the representation of women at the central bank. She said the BOJ is well positioned to achieve its goal of having women fill 20% of management positions by June next year. "Productivity overall can be boosted by making the work environment friendlier to the needs of each employee,' Koeda said.
Reuters
08-07-2025
- Business
- Reuters
BOJ's Koeda says she's keeping an eye on second-round effects from rice prices -Bloomberg
TOKYO, July 9 (Reuters) - Bank of Japan board member Junko Koeda said she was keeping a close eye on possible second-round effects on underlying inflation from recent rises in the price of rice, Bloomberg News reported on Wednesday. In an interview conducted on Monday, Koeda said it was inappropriate to predict now how soon the BOJ could resume interest rate hikes due to uncertainty over the economic outlook, Bloomberg reported. "Recent hard data on inflation shows prices of rice and other food items are rising more than expected compared with the time of the BOJ's May meeting, so I am watching developments carefully," Koeda was quoted as saying. Such cost-push pressures from higher food costs are the main drivers of Japan's consumer inflation, which is moving around 3% recently, she said. The BOJ's weighted median average, which is a key measurement of underlying inflation, remains short of the central bank's 2% target, Koeda was quoted as saying. But Koeda added she was "keeping an eye out" on how price moves in Japan's staple rice could affect households' inflation expectations and underlying inflation, Bloomberg reported.
CNA
08-07-2025
- Business
- CNA
BOJ's Koeda says she's keeping an eye on second-round effects from rice prices -Bloomberg
TOKYO :Bank of Japan board member Junko Koeda said she was keeping a close eye on possible second-round effects on underlying inflation from recent rises in the price of rice, Bloomberg News reported on Wednesday. In an interview conducted on Monday, Koeda said it was inappropriate to predict now how soon the BOJ could resume interest rate hikes due to uncertainty over the economic outlook, Bloomberg reported. "Recent hard data on inflation shows prices of rice and other food items are rising more than expected compared with the time of the BOJ's May meeting, so I am watching developments carefully," Koeda was quoted as saying. Such cost-push pressures from higher food costs are the main drivers of Japan's consumer inflation, which is moving around 3 per cent recently, she said. The BOJ's weighted median average, which is a key measurement of underlying inflation, remains short of the central bank's 2 per cent target, Koeda was quoted as saying. But Koeda added she was "keeping an eye out" on how price moves in Japan's staple rice could affect households' inflation expectations and underlying inflation, Bloomberg reported.
Bloomberg
08-07-2025
- Business
- Bloomberg
New Board Member Hints at Possible Raising of BOJ Price Outlook
One of the Bank of Japan's newest board members alluded to a possible upward revision to the central bank's inflation view this month, an outcome that would keep open the possibility of another rate increase this year. 'Inflation for rice and food-related items has been stronger than expected,' Junko Koeda said Monday in her first media interview since joining the board in March. 'I'm closely watching potential secondary effects on underlying inflation from rice, which is a staple food.'
Reuters
26-03-2025
- Business
- Reuters
New BOJ board member Koeda says real interest rates very low
TOKYO, March 26 (Reuters) - The Bank of Japan's new board member Junko Koeda said on Wednesday the country's real interest rates are currently "extremely low." She also told a news conference that Japan's economy was making some progress in achieving an environment where price rises are accompanied by higher wages. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. "Looking at various indicators, we can say Japan's underlying inflation is heading towards" the central bank's 2% target, said Koeda, who joined the nine-member board on Wednesday. The government in January nominated Koeda, an academic who had warned of the cost of prolonged monetary easing, to join the board, replacing Seiji Adachi.
