Japan government panel member calls for moderate BOJ rate hikes
Japan government panel member calls for moderate BOJ rate hikes
Thu, July 2, 2026 at 6:27 AM UTC
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TOKYO, July 2 (Reuters) - The Bank of Japan should continue to raise interest rates at a moderate pace to rectify excessive yen declines, Toshihiro Nagahama, a government panel member known as an economic aide to Prime Minister Sanae Takaichi, said on Thursday.
Nagahama said he sees Japan's nominal neutral rate, or the level that neither cools nor overheats growth, at around 1.5%.
The central bank should thus raise its policy rate, currently at 1%, two more times at a pace of once every six months, he told a news conference.
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"Moderate BOJ rate hikes are important in rectifying excessive yen weakness," Nagahama said.
(Reporting by Leika Kihara; Editing by Christian Schmollinger)
Source: “AOL Money”
