TOKYO, Sept 2 (Reuters) – The Bank of Japan must conduct interest rate hikes nimbly after gauging domestic financial conditions and examining overseas developments, hawkish board member Hajime Takata said on Wednesday.
“I consider it necessary for the BOJ to shift from the current stance of encouraging a rise in underlying inflation and to demonstrate to the market its determination to prevent upward deviations in prices,” Takata said in a speech to business leaders in Sapporo in northern Japan.
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.
(Reporting by Makiko Yamazaki; Editing by Tom Hogue)
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