The Bank of Japan should raise its benchmark rate to support the yen and curb inflation, Liberal Democratic Party lawmaker and former digital transformation minister Taro Kono has said, as political uncertainty clouds the outlook for economic policy.
"We need to fix the yen rate. In order to do that, the Bank of Japan needs to increase the interest rate,” Kono said Tuesday in an interview. "If the Bank of Japan delays a rate increase, I think it would mean inflation will continue and everything we import would be higher,” he added.
Kono’s comments come days after Prime Minister Shigeru Ishiba’s decision to resign raised questions about the outlook for economic policies, with some economists citing the likelihood of a delayed BOJ hike and others expressing concern about possible fiscal stimulus.
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