金十数据|2月 25, 2026 06:08
[Former Bank of Japan Governor Haruhiko Kuroda Calls for Continued Rate Hikes and Tighter Fiscal Policy]
Jin10 News, February 25 – Former Bank of Japan Governor Haruhiko Kuroda stated that, given the current favorable economic conditions, it is necessary to continue raising interest rates and tightening fiscal policy. He warned that Prime Minister Sanae Takaichi's large-scale spending plans could lead to overheating inflation.
Kuroda, known for his aggressive monetary stimulus policy launched in 2013, which was a key component of former Prime Minister Shinzo Abe's 'Abenomics' reflation strategy, remarked that with steady economic growth and gradual wage increases, the Bank of Japan might raise interest rates approximately twice a year in 2026 and 2027.
'Today, Japan is facing inflation and yen depreciation. Japan needs to shift toward tighter fiscal and monetary policies. The Bank of Japan must gradually raise interest rates to a neutral level. Fiscal policy must also be tightened. I am skeptical about whether increased spending and tax cuts are appropriate,' Kuroda said.
He warned that expansionary fiscal policies could backfire, exacerbating inflationary pressures and driving up bond yields.
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