Takata Urges BOJ to Hike Rates More Flexibly Amid Inflation Pressures

BOJ board member Hajime Takata is urging the central bank to conduct interest rate hikes more flexibly in response to intensifying inflationary pressures. Speaking at a news conference in Sapporo, Japan, Takata said that 2026 marks a significant turning point where the BOJ will need to respond more quickly to economic and price developments.

Takata, who dissented against the BOJ's decision to keep short-term interest rates steady in July, noted that the global economy is recovering with support from fiscal measures and AI-led investment. He also highlighted that Japan is facing inflation pressures linked to the Middle East conflict.

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 thereafter than the current pace of roughly two times a year.