Bank of Japan Signals Potential Interest Rate Hikes Amid Inflation Concerns

Bank of Japan board member Hajime Takata advocates shifting focus from deflation to preventing inflation overshoot, urging gradual interest rate hikes after the central bank raised rates to 0.75%, the highest since 1995. While Takata emphasizes risks of entrenched inflation and global economic pressures, Governor Kazuo Ueda indicates further rate increases may continue if inflation targets are met. These developments have sparked speculation on BOJ's policy tightening and its potential impact on emerging markets like India.