Bank of Japan Policy Board member Takata Hajime (高田創) said in a speech that policy should be managed nimbly, without being constrained by the intervals or increments of rate hikes. He pointed to the need for flexible monetary policy management based on economic conditions in Japan and overseas.
Bank of Japan Policy Board member Takata Hajime (高田創) said monetary policy should be managed nimbly, without being bound by set intervals or increments for rate hikes, after assessing overseas conditions as well as the degree of accommodation in domestic financial conditions. The speech was delivered in Sapporo, Hokkaido.
Takata said the BOJ must show markets its intention to curb upside risks to prices while also taking into account the impact transmitted through the foreign-exchange market. The BOJ kept its policy rate at around 1.0% at its July monetary policy meeting, but it has been reported that the central bank envisages a flexible approach to the pace of future rate hikes.
Takata was said to have proposed at the July meeting that the rate be raised to around 1.25%, while Governor Ueda Kazuo (植田和男) said the timing and pace of future rate hikes would be discussed, including at the next meeting. There is also speculation that the interest-rate swap market is pricing in a rate hike at this month’s meeting.
The BOJ is expected to continue responding nimbly in its future policy management, depending on domestic and overseas economic conditions.