Japan must raise rates, get fiscal house in order, says veteran lawmaker Kono

Japan must raise rates, get fiscal house in order, says veteran lawmaker Kono

Source: EODHD - https://www.investing.com/news/economy-news/japan-must-raise-rates-get-fiscal-house-in-order-says-veteran-lawmaker-kono-4199041
Published: Aug 19, 2025 12:31 AM

By Leika Kihara and Takaya Yamaguchi TOKYO (Reuters) -Japan must raise interest rates and get its fiscal house in order to strengthen a weak yen that has pushed up inflation and brought pain to households, veteran ruling party lawmaker Taro Kono told Reuters on Tuesday. The Bank of Japan (BOJ) ended a massive, decade-long stimulus programme last year and raised short-term rates to 0.5% in January, on the view that Japan was on the cusp of durably hitting its inflation target of 2%. Kono, a former foreign minister who is touted as being among the candidates to become a future prime minister, said it was undesirable for inflation-adjusted real borrowing costs to stay negative for a long time....

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