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2025-10-23 10:10:56
[Former Bank of Japan Board Member: The Bank of Japan may raise interest rates as early as December] Former Bank of Japan Board Member Eiji Maeda said that the Bank of Japan may raise interest rates as early as December because the expansionary fiscal policy that the new Prime Minister Sanae Takaichi is expected to adopt will help the economy withstand the impact of US tariffs. Maeda also said that the central bank should steadily advance further interest rate hikes because the slow pace of rate hikes is producing side effects, such as soaring housing prices in major cities and rising household living costs due to the weak yen. He said: "The Bank of Japan may have lagged behind the situation in responding to inflation risks, which has led to some distortions in the economy. The pace of policy normalization is too slow, which will weaken the yen and accelerate inflation, thereby harming people's livelihoods. The Bank of Japan must be vigilant not only to downside risks to the economy, but also to upside risks to prices."
