A leading candidate for Japan’s next prime minister has backed the Bank of Japan’s policy of gradually raising interest rates, saying normalizing monetary policy could help lower prices and boost industry’s competitiveness.
“The Bank of Japan is on the right track to gradually adapt to a world of positive interest rates,” Shigeru Ishiba, a heavyweight in the ruling party, said in an interview.
“The negative aspects of rate hikes, such as a stock market crash, are now the focus, but we must also recognise the benefits. Higher interest rates can reduce the cost of imports and make the industry more competitive,” he said.
