The Bank of Japan (BoJ) should not be overly cautious about further rate hikes given persistent upside price risks and still-accommodative financial conditions, board member Junko Koeda said in a speech. She called for timely policy adjustments based on economic and price developments, while considering the estimated range of the neutral interest rate. Koeda noted that price increases across a broad range of consumer items and a shift in the distribution of price changes suggest underlying inflation is becoming anchored around 2%. Stable wage growth also indicates that sustained inflation is taking hold more firmly in Japan. She stressed the need to deepen the BoJ’s analysis of economic conditions, prices, and financial markets as positive interest rates become a normal feature of economic activity.