Market Chatter: Bank of Japan Board Member Hints at Potential Inflation Forecast Revision

MT Newswires Live
Jul 09

A newly appointed member of the Bank of Japan's board, Junko Koeda, has indicated a possible upward revision to the central bank's inflation forecast this month, Bloomberg News reported Wednesday.

Such a move would maintain the prospect of another interest rate increase later in the year, said the news wire.

In her initial media interview since joining the board in March, Koeda highlighted stronger-than-expected inflation for rice and food items, emphasizing her close monitoring of potential secondary effects on underlying inflation from rice, a staple food in Japan, said the report.

Coming before President Donald Trump's recent announcement of a 25% tariff on Japan, Koeda's remarks underscored significant economic uncertainties from the US levies and stressed the need to carefully assess incoming data before considering any policy adjustments, it added.

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