Bank of Japan Policy Board member Hajime Takata stated that, assuming the stable inflation target has been largely achieved, the central bank needs to further adjust the level of monetary easing and enhance communication. Takata, speaking to local business leaders in Kyoto, emphasized the need to remain vigilant about upside risks to inflation. Takata, who proposed an interest rate hike last month and is considered the most hawkish among the nine policy board members, said on Thursday that the BOJ is currently in a phase of gradually adjusting the degree of easing, with financial conditions remaining accommodative. He added that the central bank should consider responsive measures in the event of unusual volatility in the bond market, including increasing bond purchases.
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