TOKYO (Reuters) – Bank of Japan board member Hajime Takata said on Wednesday the central bank must continue to raise interest rates gradually to avoid upside price risks from materialising.
“Inflation is approaching the BOJ’s 2% target with positive corporate behaviour already observed,” Takata said in a speech.
“It’s important to continue shifting gear gradually on monetary policy, even after January’s rate hike, to avoid creating excessively high expectations of continued monetary easing,” which could materialise upside price risks and the risk of overheating in financial activity, he said.
(Reporting by Leika Kihara; Editing by Tom Hogue)
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