BoJ Takata renews push for rate rise

Bank of Japan policy board member Hajime Takata reiterated his call for an interest rate hike, citing reduced concerns over tariffs and steady progress toward the central bank’s 2% inflation target.

“Headline inflation has remained at or above 2% for three and a half years,” Takata said in a speech on Monday, emphasizing that “now is an opportune time to raise the policy rate.”

Takata previously proposed increasing the rate from 0.5% to 0.75%, a motion that was rejected in September. He argued that Japan’s economy is approaching its price stability objective, suggesting he may again advocate for a hike at the October 29-30 policy meeting.

He also played down concerns about a potential U.S. slowdown, highlighting the strong balance sheets of American households, corporations, and financial institutions.

Takata noted that the Fed’s September rate cut did not lead to an undesirable yen appreciation, and that U.S. tariffs have not deterred Japanese companies from investing in capital equipment or raising wages.