Senior Policy Committee Member of the Takamatsu City Government: Bank of Japan Should Avoid Raising Interest Rates Prematurely

According to Odaily, former Deputy Governor of the Bank of Japan and government policy panel member Masazumi Wakatabe stated, "Japan must raise its neutral interest rate through fiscal policy and growth strategies. If Japan's neutral interest rate rises due to fiscal policy, it would be natural for the Bank of Japan to raise interest rates. However, at present, the Bank of Japan should avoid raising rates too early or excessively tightening monetary policy." Analyst Justin Low expressed reservations about this comment, noting that Wakatabe is a member of the government panel appointed by Japanese Prime Minister Sanae Takaichi. Therefore, his remarks and stance are aligned with the government and appear to oppose the Bank of Japan's intention to raise rates later this week. (Golden Ten Data)