Bank of Japan Governing Board Member Hajime Takata stressed the need for another rate hike if inflation continues to move in line with the bank’s outlook, but said there was no reason to rush.
“It will be necessary to adjust the degree of monetary easing by stepping up a gear” if inflation trends match forecasts, Takata said in a speech in Ishikawa Prefecture on Thursday. “We must continue to create a world with positive interest rates.”
Takata told reporters later at a news conference that he saw progress toward a virtuous circle in which rising wages boost spending and support demand-driven inflation. Any policy changes, however, will depend on the numbers.
