BOJ to Adopt Nimble Rate Hikes Amid Inflation Pressures

Tokyo's Bank of Japan (BOJ) is considering a more flexible approach to interest rate hikes in response to inflationary pressures, according to hawkish board member Hajime Takata.

In a speech to business leaders in Sapporo, northern Japan, Takata emphasized the need for the BOJ to shift from its current stance of encouraging underlying inflation and demonstrate its determination to prevent upward deviations in prices.

Takata was the sole dissenter to the BOJ's decision in July to keep short-term interest rates steady at 1%, calling for a rate hike to 1.25% to respond to inflationary risks from external demand shocks.

The BOJ is set to raise the rate as soon as its two-day policy meeting through September 18, and may consider hiking more aggressively than the current pace of roughly two times a year.