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.

TOKYO—The Bank of Japan needs to keep adjusting the degree of monetary accommodation, policy board member Hajime Takata said Wednesday, as he warned about the risk of inflation climbing too high.Takata also expressed optimism about the outlook for the U.

The Bank of Japan must raise short-term interest rates to at least 1% by the second half of fiscal 2025 to contain inflation risks, board member Naoki Tamura said on Thursday.