Bank of Japan Hawk Renews Call for Rate Hikes Amid Policy Divide

A divided monetary policy outlook has emerged at the Bank of Japan as hawkish board member Hajime Takata renewed his call for further interest rate increases, just a day after Prime Minister Sanae Takaichi indicated her preference for continued loose monetary policy.Takata, considered the most hawkish member of the BOJ's board, has consistently advocated for raising the benchmark interest rate to normalise Japan's monetary stance. His position contrasts sharply with the Prime Minister's nomination of dovish candidates for key policy positions.The policy tension highlights the ongoing debate within Japanese economic leadership about the appropriate timing and pace of monetary tightening. While hawks argue that prolonged ultra-loose policy risks financial instability, dovish policymakers remain concerned about premature tightening derailing economic recovery.The BOJ's policy direction will have significant implications for global financial markets, as Japan's monetary stance affects capital flows and currency dynamics worldwide.