BOJ Board Member Advocates Flexible Rate Hikes Amid Inflation Pressures

BOJ board member Hajime Takata is advocating for more flexible interest rate hikes to counter inflationary pressures in Japan. Speaking at a news conference in Sapporo, Takata emphasized that the global economy has changed significantly and that the BOJ should respond accordingly.

Takata noted that the global economy is recovering due to fiscal measures and AI-led investment, but Japan is facing its own set of challenges, including inflation pressures linked to the Middle East conflict. He stressed that rate hikes should be made on a meeting-by-meeting basis in response to evolving economic and price conditions.

Takata's comments come as sources suggest that the BOJ may raise interest rates at its upcoming policy meeting through September 18, and potentially hike more aggressively thereafter. The benchmark 10-year bond yield has hit 3% this week, reflecting a broader global rise in interest rates amid stronger growth, AI-driven investment, and persistent inflation pressures.