Takada Hajime (高田創), a member of the Bank of Japan's Policy Board, said the pace and size of rate hikes should be adjusted flexibly, and pointed out that consecutive rate hikes could be possible without being limited to the previous 0.25 percentage-point increments. The speech and press conference were held in Sapporo.
Takada Hajime (高田創), a member of the Bank of Japan's Policy Board, delivered a speech and held a press conference in Sapporo, saying that, in light of changes in the environment, including the global rate-hiking cycle and expanding demand related to AI, "a flexible response to new circumstances will be necessary, rather than the conventional approach of once every six months, or twice a year."
On the size of rate hikes, Takada Hajime (高田創) also said, "We need to respond from among a broad range of options, rather than limiting ourselves to 0.25 percentage points," emphasizing the need for a flexible response as conditions change.
After describing that as "the conventional way of thinking," Takada Hajime (高田創) said that consecutive rate hikes could be possible "in general terms," depending on conditions, and that the pace and size of rate hikes would be determined based on the circumstances at each meeting.
Regarding future rate hikes, Takada Hajime (高田創) said, "We need to respond flexibly, without being bound by the intervals or sizes that the market has come to expect," making his forward-leaning stance more explicit.
Reports said that the market was pricing in a rate hike ahead of the next monetary policy meeting, scheduled for the 17th and 18th. He also referred to financial market developments and the impact of coordination aimed at correcting yen weakness.