Bank of Japan board member Hajime Takata indicated at a press conference in Sapporo on the 2nd that the pace of interest rate hikes could accelerate. He stated that while the pace was two hikes per year until 2025, the situation has changed in 2026, entering a new regime. He noted that two hikes per year are not necessarily fixed, and that consecutive hikes are possible in general terms. Regarding the rise in long-term interest rates, he emphasized that global conditions make it easier for rates to rise due to inflation from worsening Middle East situations, and he stressed the need to closely monitor and follow the environment. The BOJ has a policy to flexibly increase bond purchases in exceptional situations where long-term rates rise sharply, but Takata mentioned that bond market functioning has been recovering and explained that the current situation does not immediately warrant such exceptional measures.
BOJ board member hints at possible acceleration in rate hike pace, which would push yields up.
