Bank of Japan Policy Board member Takata Hajime (高田創) argued in a speech that flexible rate hikes are necessary against a backdrop of growing AI demand and overseas shifts toward rate hikes. The next meeting is scheduled for 17–18 September, and the market probability of a September rate hike has been reported at approximately 94%.
In a speech in Sapporo, Bank of Japan Policy Board member Takata Hajime (高田創) said the bank had entered a new phase in which it should raise interest rates flexibly rather than adhere to a fixed pace, and called for an early additional rate hike. He explained that the background included growing demand related to AI and moves by overseas central banks, which were increasing the risk of upside surprises in prices.
Regarding the impact of the situation in the Middle East, Takata cited a retreat in deflationary risks while pointing out that discussions should henceforth place greater emphasis on price increases. He described changes in overseas monetary policy as "the starting gun" and expressed the view that a shift toward rate hikes could come sooner.
Since ending its negative interest rate policy in March 2024, the Bank of Japan has pursued rate hikes every six months, and the latest remarks call for a shift in thinking toward becoming a normal country, based on rising overseas interest rates. The next meeting is scheduled for 17–18 September, and reports indicate that a September rate hike is already heavily priced into the market.