Bank of Japan board member Naoki Tamura warned that the central bank must lift rates every few months as inflation risks climb. Tamura, regarded as the most hawkish voice on the policy board, said the current stance risks lagging behind price pressures. His call signals a shift from the long‑standing ultra‑low‑rate policy that has defined Japanese markets for years and test its inflation target.

Investors have taken the warning as a cue to reassess yen‑linked portfolios. A tighter monetary path could lift yields on Japanese government bonds, narrowing the carry trade that has kept the yen depressed. Equity markets may see volatility as sectors reliant on cheap financing, such as construction and consumer durables, confront higher borrowing costs soon.

Tamura’s demand for a rate hike every few months puts pressure on Governor Kazuo Ueda to justify any pause. Market participants will watch upcoming inflation data for signs that the central bank must accelerate tightening. Until the policy board signals a concrete timetable, bond yields and the yen are likely to remain on a volatile trajectory for global investors alike today.