Bank of Japan board member Etsuko Koike stated that monetary policy will be formulated in a manner that ensures the central bank does not fall behind in curbing inflation.
Speaking at a press conference in Fukuoka, a city in western Japan, on Thursday, she emphasized that monetary policy is playing an increasingly significant role in addressing inflation.
She highlighted the ongoing monitoring of both upside risks to prices and downside risks to the economy, noting that she views the risks to prices as more pronounced.
Koike pointed out that the lower bound of Japan's neutral interest rate is above 1%, indicating that the Bank of Japan can raise its benchmark interest rate while still maintaining accommodative financial conditions.
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