TOKYO - The Bank of Japan should stay on the path for more interest rate hikes to deal with rising prices in "another gear shift" in its monetary policy following the end of unorthodox monetary easing steps two years ago, a policymaker said Thursday.

Hajime Takata, known as one of the BOJ's most hawkish board members, said Japan's real interest rates remain significantly lower than the rates seen overseas and financial conditions are still accommodative, encouraging consumers and businesses to borrow.