BoJ’s Koeda: Appropriate to deal with inflation with monetary policy

Bank of Japan (BoJ) Policy Board Member Junko Koeda said that it’s appropriate to deal with inflation with monetary policy, but there is some time before the June policy meeting, so the central bank will continue to look at any change in balance between price and growth risks, Reuters reported on Thursday. Key quotes Inflationary risk is already materialising. Don't expect sharp deterioration in economy but depending on Middle East conflict, our view on economic outlook could change. Risk of inflation overshoot bigger than risk of recession. Appropriate to deal with inflation with monetary policy. But there is some time before June policy meeting so will continue to look at any change in balance between price, growth risks. Personally believe bottom of Japan's estimated neutral rate is higher than 1%. Market reaction At the press time, the USD/JPY pair is down 0.03% on the day to trade at 158.88.