Junko Koeda, a member of the Bank of Japan's Policy Board, emphasized the central bank's strengthened role in combating inflation, marking a significant shift from its previous stance. With Japan's core inflation near 2% and headline CPI around 3%, the BOJ has transitioned from encouraging price increases to preventing excessive inflation. This change follows Japan's inflation peak of 4.2% in early 2023, prompting the BOJ to dismantle its ultra-loose monetary policy and implement its first rate hike since 2007. As of March 2026, the BOJ's short-term policy rate is at 0.75%, the highest since 1995. The central bank began reducing its Japanese government bond purchases in June 2025, aiming to taper them to about 2 trillion yen monthly by early 2027. Koeda's remarks indicate that the BOJ will continue to adjust its monetary policy based on economic conditions to ensure sustainable price stability, avoiding past mistakes like the 2024 rate hike that led to a global market selloff.