BoJ Board Member Takata says fears of Japan's economy returning to deflation have been dispelled and believes it's necessary to move the BoJ's focus more to upswing in prices

Says:

• Overseas economies have grown moderately on the whole, although some weakness seen.
• Even after December rate hike, real short term interest rates have been significantly negative in Japan.
• Proposed a rate hike in January on the view that BoJ must continue adjusting real interest rates, which remain significantly lower than the rates seen overseas.
• Must conduct further rate hikes in a gradual manner.
• BoJ should take time and be prudent in reducing its JGB purchases
• Price increases now have a greater tendency to generate second-round effects
• Must carefully monitor divergence in monetary policy stances between Japan and abroad, particularly for FX volatility
• Need to consider a response for the bond market in exceptional cases
• BoJ should make a further “gear shift” on rates and communicate on the assumption its price target is almost achieved