Bank of Japan (BoJ) board member Hajime Takata said on Wednesday that the central bank needs a different response from conventional semi-annual rate hike pace.
Key quotes
2026 marks a regime change, needs a different response as rate hikes are becoming a global trend on the back of economic growth, as well as AI-linked investment.
BoJ needs a different response from the conventional semiannual rate hike pace.
BoJ needs to consider a broad range of options, not just a 0.25% rate hike each time.
Need a more nimble approach with rate hikes.
Neutral rates could diverse from levels calculated based on conventional analysis.
As a central bank, won't comment on benchmark JGB yield hitting 3%.
We will monitor bond market situations carefully, though we don't believe Japan is an exceptional case.
It's not a foregone conclusion that the next hike will be 0.25%.
Rate hike pace should be assessed at every meeting. Generally speaking, consecutive rate hikes could be a possibility.
Market reaction
At the time of writing, the USD/JPY pair is up 0.10% on the day at 160.35.
https://www.fxstreet.com/news/bojs-takata-says-central-bank-need-to-consider-a-broad-range-of-options-on-monetary-policy-response-202609020550
