Financial News: BoJ's Koeda Says Interest Rate Hike Needed To

BoJ's Koeda Says Interest Rate Hike Needed To Avoid Distortions

11/20/2025 - 01:45:00 (RTTNews)

(RTTNews) - The Bank of Japan should raise interest rate from the current low levels to avoid unintended distortions in the future, board member Koeda Junko said Thursday.

"Given that real interest rates are currently at significantly low levels, I believe that the Bank needs to proceed with interest rate normalization," Koeda told local leaders in Niigata.

"In this situation, I believe it is necessary that the Bank continue to raise the policy interest rate and adjust the degree of monetary accommodation in accordance with improvement in economic activity and prices," she said.

The uncollateralized overnight call rate remains at around 0.5 percent. Previously, the BoJ had raised the benchmark rate to the current level from 0.25 percent in January.

The BoJ holds the next monetary policy meeting on December 18 and 19.

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