The Bank of Japan needs to keep adjusting the degree of monetary accommodation in stages, policy board member Hajime Takata said as he warned about inflation risks.

Bank of Japan board member Hajime Takata said on Wednesday the central bank must continue to raise interest rates gradually to avoid upside price risks from materialising. "Inflation is approaching the BOJ's 2% target with positive corporate behaviour already observed,

The Bank of Japan must raise interest rates more as keeping them at current low levels could cause excessive risk-taking and push up inflation too much, its board member Hajime Takata said, cementing expectations of further hikes in borrowing costs.