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A member of the Takashi City Government Policy Task Force stated that the Bank of Japan should avoid raising interest rates too early.

2025-12-17 06:00

Odaily Planet Daily reports that former Bank of Japan Deputy Governor and government policy committee member Masazumi Wakatabe stated, "Japan must raise the neutral interest rate through fiscal policy and growth strategy. If Japan's neutral interest rate rises due to fiscal policy, a rate hike by the Bank of Japan would be a natural consequence. However, the Bank of Japan should avoid raising rates prematurely and excessively tightening monetary policy at present." Analyst Justin Low expressed reservations about this comment, as he is a member of the government committee appointed by Prime Minister Sanae Takaichi. Therefore, his remarks and inclinations suggest he is on the side of the government and attempting to oppose the Bank of Japan's intention to raise interest rates later this week. (Jinshi)