BOJ's Takata urges nimble rate hikes to counter inflation pressures

The Bank of Japan's (BOJ) hawkish board member Hajime Takata has called for nimble and data-dependent interest rate hikes to counter inflationary pressures, rather than the currently anticipated semiannual rate hikes. Takata, who dissented from the July decision to maintain short-term interest rates at 1 per cent, suggested that future rate hikes could become more flexible and influenced by domestic inflation, growth trends, and international developments.

In a speech to business leaders in Sapporo, Takata emphasized the need for the BOJ to demonstrate its determination to prevent upward price deviations, and highlighted the risk of high market volatility resulting from divergent monetary policies between Japan and other countries, particularly in foreign exchange markets.