Bank of Japan (BOJ) policymaker Junko Nakagawa emphasized the need for a careful evaluation of market trends and potential adjustments to monetary easing, given the current extremely low real interest rates. She expressed optimism about Japan's economic growth, supported by high corporate earnings, but warned of inflationary risks from rising import costs and prolonged global inflation. Nakagawa indicated that while rate hikes are still on the table, the BOJ will assess the economic impact of market fluctuations before any policy changes. Recent comments have contributed to a decline in the USD/JPY exchange rate, reflecting market responses to BOJ's monetary policy signals. Despite market volatility, officials reportedly see little need for immediate rate hikes at the next meeting, aligning with their cautious approach. The interplay between domestic policies and global economic trends will be crucial for Japan's economic stability moving forward.