Takata Hajime (高田創), regarded as the most hawkish member of the Bank of Japan's Policy Board, advocated flexible rate hikes, and the market is said to view the probability of a September hike as nearly 100%. The yen rebounded following the remarks, while interest-rate volatility in the bond market reportedly increased.
Bank of Japan Policy Board member Takata Hajime (高田創) reportedly said in a speech in Sapporo, Hokkaido, that the central bank should pursue flexible, data-dependent rate hikes while assessing domestic and overseas economic developments to contain inflation risks.
Takata Hajime (高田創) described 2026 as a turning point for policy normalization and said that rate hikes should be adjusted in response to changes in the inflation and economic environment, rather than carried out at a fixed pace.
In the speech, Takata Hajime (高田創) also referred to his position at the Bank of Japan's July policy meeting. It was confirmed that he had advocated raising the policy rate by 0.25 percentage points to 1.25%.
Market reactions have been seen in short-term interest rates and the yen's movements, and the probability of a September rate hike has reportedly been almost fully priced in.