Abenomics Architects Urge Faster Rate Hikes as BOJ Eyes Move to 1.25%
Updated
Updated · The New York Times · Sep 15
Abenomics Architects Urge Faster Rate Hikes as BOJ Eyes Move to 1.25%
3 articles · Updated · The New York Times · Sep 15
Summary
Koichi Hamada and other architects of Japan’s easy-money era now say low rates have outlived their purpose and want the Bank of Japan to tighten faster.
Inflation has stayed above the BOJ’s 2% target for most of the past four years, while the yen has sunk to multidecade lows against the dollar.
The BOJ is widely expected to raise rates on Friday to 1.25% from 1%, extending a run of quarter-point increases roughly every six months.
Prime Minister Sanae Takaichi has so far stuck with Abenomics since taking office last year, pressing for low rates alongside record fiscal spending.
The split underscores how Japan’s debate has flipped since 2012—from fighting deflation and a strong yen to containing persistent inflation and currency weakness.