Bank of Japan hawks call for further rate hikes to sing a different tune from Governor Haruhiko Kuroda's accommodative stance.

After Japanese Prime Minister Naoto Kan expressed his desire for the continuation of a loose monetary policy, the next day the most hawkish member of the Bank of Japan, Takeshi Kada, once again called for an increase in the benchmark interest rate. "I believe that the central bank should further adjust its policy direction, based on the assumption that the goal of price stability has been largely achieved," Kada said on Thursday in Kyoto during a speech to local business leaders. Kada's support for a rate hike for the second consecutive time at the policy meeting last month took many Bank of Japan observers by surprise. Although his call for further rate hikes on Thursday was expected, it also highlighted the increasing rift between members of the Bank of Japan's policy board who advocate for a more aggressive normalization of policy and the government, especially after Prime Minister Kan nominated two well-known supporters of loose monetary policy to join the board.