Bank of Japan board member Hajime Takata highlighted the need for another interest rate hike if inflation continues to develop in line with the bank’s outlook, although he indicated there’s no need to rush any move.
"It will be necessary to adjust the degree of monetary easing by shifting up another gear” if inflationary trends align with projections, Takata said Thursday in a speech in Ishikawa Prefecture. "We need to proceed with making a world with positive interest rates.”
Takata later told reporters at a news conference that he’s seeing progress toward achieving a virtuous cycle in which rising wages spur spending, supporting demand-led inflation, but any policy moves will be conditional on data.
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