BoJ's Takata (hawkish dissenter) says believe BoJ needs to conduct rate hikes nimbly after gauging the degree of accommodation in domestic financial conditions, in addition to examining developments overseas

Says: Need to take a flexible approach to policy. Middle East pressures could push inflation above target. The BoJ needs to move away from its current stance of encouraging higher underlying inflation and show markets it is determined to prevent prices from overshooting. Believe 2026 marks the beginning of a new phase, where rate hikes will not follow a fixed pace. Need to move rates closer to neutral. Current situation of rising energy prices entails the risk of overshooting the target.