BOJ Policy Board member Takata (高田) said that a nimble response is needed, rather than the previous approach of reviewing policy once every six months. Takata indicated that a response different from previous practice may be required in 2026, and also referred to the risk that estimates of the neutral interest rate could be significantly off and to the low level of real interest rates.
Takata (高田), a BOJ Policy Board member, said that a nimble response is needed rather than the previous framework of reviewing policy once every six months. The remarks have been interpreted as signaling flexibility in the conduct of interest rate policy going forward.
The comments indicated that a response different from previous practice may be needed in 2026, pointing to the possibility of new changes in the approach to conducting interest rate policy.
Takata said there was a risk that the neutral interest rate could diverge significantly from previous estimates, and indicated that real interest rates were at a considerably low level.