Japan should aim to keep interest rates and prices “moving,” according to Katsunobu Kato, a potential candidate for the country’s prime minister.
“It’s clear that we have to move in this direction” where prices and tariffs don’t stagnate, Kato said in an interview Tuesday, when asked whether Japan is at a stage to raise tariffs further. While caution is still warranted for the foreseeable future given the market turbulence this month, Kato also said years of stagnant prices and tariffs had been damaging.
“That lack of movement created structural distortions,” Kato said. “We’re finally reaching a stage where rates can continue to move.”
