BOJ board member Takata said the bank should flexibly raise interest rates after
assessing domestic financial conditions and overseas developments. He urged
shifting away from the current stance that promotes higher potential inflation
and said the BOJ should demonstrate determination to prevent inflation from
deviating upward from expectations. Takata was the lone dissenter in July when
the BOJ left the short-term rate at 1%; he had advocated raising it to 1.25% to
counter inflation risk from external demand shocks.
