Bank of Japan board member Naoki Tamura has called for raising interest rates every few months, signaling a potential shift toward a faster tightening cycle. His remarks underscore growing concern within the central bank over persistent inflationary pressures in the world's fourth-largest economy.
Tamura's proposal departs from the BOJ's historically cautious approach to monetary policy normalization. Japan has long kept rates near zero to combat deflation, but recent price increases are prompting some policymakers to reconsider the pace of adjustments.
The BOJ board member did not specify a target rate or exact timeline, according to the report. His comments come as inflation measures remain above the central bank's 2% target, though economic growth has shown signs of uneven recovery.
Markets will now watch for any consensus shift among other BOJ members ahead of the next policy meeting. If adopted, faster rate hikes could strengthen the yen and impact Japan's government bond yields, affecting global capital flows.
Tamura's hawkish stance was reported exclusively by Bloomberg, with no other sources cited to corroborate or challenge the claims. This singular sourcing limits the immediate cross-verification of his exact statements.