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2026-02-17 08:19:48
[Former Bank of Japan Board Member: April is the Right Time to Raise Rates, March Action Too Risky] According to foreign media reports, former Bank of Japan board member Seiji Adachi recently stated that the Bank of Japan is likely to use the abundant new data available in April as an opportunity to raise interest rates, ignoring market speculation about a possible rate hike in March. Adachi said in an interview on Monday, "A rate hike in March would be risky because it would be based on expectations rather than confirmation signals. April will provide a large amount of data to confirm improvements in underlying inflation." This view aligns with growing market expectations that the board, led by Governor Kazuo Ueda, may act in the spring—earlier than most economists predicted after the last rate hike in December. Regarding concerns that Prime Minister Sanae Takaichi might hinder the Bank of Japan's policy normalization process, especially after her landslide victory in the election last week, Adachi believes she is unlikely to prevent rate hikes, as such action could backfire. He stated, "Takaichi seems to have become very sensitive to market dynamics. If she tells the Bank of Japan not to raise rates, the potential market reaction would be a depreciation of the yen."
