BOJ Policymaker Calls for Nimble Interest Rate Hikes Amid Inflation Concerns

Bank of Japan policymaker Hajime Takata called for an early interest rate hike, saying the central bank should take a 'nimble' approach to further increases rather than be bound by a set interval or range. Speaking in Sapporo ahead of the Sept. 17-18 BOJ policy meeting, Takata emphasized the need to prevent 'upward deviations' in inflation and consider the impact of currency movements on prices.

Takata said this year represents a 'regime change' where rate hikes will not be carried out at a fixed pace but instead conducted in a data-dependent manner. He noted that the downside risks to Japan's economy have receded, allowing the focus to shift more to upswings in prices.

The BOJ raised its policy rate to around 1.0 percent at its June meeting, and has three more meetings scheduled for this year in September, October, and December.