Particle.news
Download on the App Store
8 ARTICLES
·
5h ago

BOJ Hawk Takata Says Now Is Prime Opportunity to Raise Rates as Markets Tilt to Early Move

Governor Kazuo Ueda has left the timing open ahead of the Oct. 29–30 policy meeting.

The Japanese national flag waves at the Bank of Japan building in Tokyo, Japan March 18, 2024. REUTERS/Kim Kyung-Hoon
Image
Image
Bank of Japan Governor Kazuo Ueda attends a press conference after its policy meeting, in Tokyo, Japan, September 19, 2025. REUTERS/Manami Yamada

Overview

  • Board member Hajime Takata reiterated that Japan has likely met the 2% inflation goal and called Monday for resuming rate hikes.
  • The yen and Japanese government bond yields rose after Takata’s remarks, reinforcing expectations for a hike by January.
  • Two of nine policymakers, including Takata, sought a move to 0.75% in September, highlighting a clear split with Ueda’s cautious stance.
  • An IMF official urged the Bank of Japan to tighten very gradually given trade-related downside risks and an uncertain global outlook.
  • Political turnover adds uncertainty, with parliament set to choose a new prime minister on Tuesday and frontrunner Sanae Takaichi favoring looser policy.