Hajime Takata, a member of the Bank of Japan's policy board, stated that deflation is completely in the past and the path for the central bank to raise interest rates at an early stage is now clear.

Takata said, "I believe the bank should shift gears further and signal through its communications that the price stability target has largely been achieved."

He also warned that external shocks could cause Japanese inflation to rise more than anticipated.

These remarks come as investors are searching for clues regarding the timing of the Bank of Japan's next policy move. Although Governor Kazuo Ueda maintains that the central bank is not behind the curve, market anxiety is growing.

Concerns about inflation rising too rapidly and too high are being amplified by a weak yen and the expansionary fiscal policies promoted by Prime Minister Sanae Takaichi.

Takata, previously a private-sector economist, is viewed as the most pronounced hawk on the Bank of Japan's board. In a January vote where the bank decided 8-1 to maintain the policy rate at 0.75%, he was the sole dissenting member, proposing an increase to 1.0%.

The board member indicated that previous concerns about the impact of US tariffs have eased—he had previously identified them as a major obstacle on the bank's path to raising rates.

He stated, "Regarding monetary policy operations, I believe the 'real dawn' is finally in sight, and based on this, the bank is gradually shifting gears."