BOJ's Takata Seeks Nimble Rate Hikes Amid Inflation Pressures

BOJ board member Hajime Takata has urged a more flexible approach to interest rate hikes, citing intensifying inflationary pressures and a rapidly changing economic environment.

Takata, who was the sole dissenter to the BOJ's decision in July to keep short-term interest rates steady, made his comments at a news conference in Sapporo on Wednesday. He noted that the global economy is recovering with support from fiscal measures and AI-led investment, but also warned of divergences between Japanese and overseas monetary policies that could trigger volatility in financial markets.

Takata emphasized that the BOJ needs to respond more flexibly to economic and price developments, rather than adhering to a fixed semiannual pace or magnitude of rate hikes. He declined to comment on what pace or magnitude of rate hikes would be appropriate, saying such decisions should be made on a meeting-by-meeting basis.