A former Bank of Japan policy committee member said that at a time when the government is doing its best to boost the economy, the Bank of Japan should take a cautious approach to raising interest rates. Harada Yasushi said in an interview that the Japanese government should make full use of fiscal, monetary, and tax policies to stimulate demand and achieve a so-called “high-pressure” economy. “If it moves too fast, it may lead to excessive tightening,” Harada said when talking about the impact of the central bank's interest rate hike on the economy. He pointed out that current inflation is partly due to supply-side factors, including rising rice prices, and added that further interest rate hikes may have limited impact on such cost-driven price pressures.

A former Bank of Japan policy committee member said that at a time when the government is doing its best to boost the economy, the Bank of Japan should take a cautious approach to raising interest rates. Harada Yasushi said in an interview that the Japanese government should make full use of fiscal, monetary, and tax policies to stimulate demand and achieve a so-called “high-pressure” economy. “If it moves too fast, it may lead to excessive tightening,” Harada said when talking about the impact of the central bank's interest rate hike on the economy. He pointed out that current inflation is partly due to supply-side factors, including rising rice prices, and added that further interest rate hikes may have limited impact on such cost-driven price pressures.