Odaily News Sayuri Shirai, a former member of the Bank of Japan's board, said that if the bank wants to raise interest rates further, it may need to do so within this year, otherwise the window will close. Japan's weak domestic demand makes it difficult to raise interest rates, and if inflation falls below the central bank's 2% target, rate hikes will be more difficult to push forward. "The Bank of Japan may want to normalize policy as soon as possible, even if it can only slightly correct the excessive depreciation of the yen," she said. "But Japan's economy is too weak, and fragile domestic demand is incompatible with the path of rate hikes." Although Japan's wage growth shows positive signs, continued inflation is suppressing household spending. The latest government data showed that private consumption was flat in January-March. The central bank expects consumer inflation to slow to below 2% in the next fiscal year starting in April 2026 and beyond, which Shirai believes will complicate further rate hike decisions. Growth headwinds are also intensifying. Japan faces the risk of a technical recession after its economy shrank in the first quarter, and exports to the United States fell for the first time in four months in April, highlighting the impact of high tariffs. (Jinshi)