Takao Ochi advocates for the Bank of Japan to maintain normalizing monetary policy.

A senior ruling party official, Takao Ochi, suggests that the Bank of Japan should keep normalizing monetary policy based on economic developments, despite potential risks. Ochi believes that Japan should maintain a focus on 2% stable inflation, as part of a virtuous wage-price cycle, despite concerns that higher interest rates could put a strain on smaller companies seeking financing. The Bank of Japan is reportedly seeing conditions fall into place for normalization, with growing political support for further interest rate hikes.

May 13, 2024
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