BOJ unlikely to raise rates quickly to avoid budget impact

Binance News · 2024-11-28T01:58:28.000Z

According to Jinshi Data, Motohisa Furukawa, the tax director of the Democratic Party for the People, said the Bank of Japan may not change its policy suddenly to avoid affecting budget discussions. He pointed out that although there is a risk that the economy will fall into deflation again, a quick rate hike is "unimaginable." Motohisa Furukawa stressed that raising interest rates too early would have a negative impact on the private sector, households and government finances, and believed that raising interest rates would have limited effect in slowing down the weakening of the yen. He said that considering various factors, it is impossible for the Bank of Japan to raise interest rates quickly.

According to Jin Ten data reports, Motohisa Furukawa, the tax chief of the National Democratic Party of Japan, stated that the Bank of Japan is unlikely to suddenly change its policy to avoid affecting budget discussions. He pointed out that despite the risk of the economy falling back into deflation, a rapid interest rate hike is 'unimaginable.'
Motohisa Furukawa emphasized that premature interest rate hikes will have a negative impact on the private sector, households, and government finances, and believes that the effect of interest rate hikes on slowing the depreciation of the yen is limited. He stated that considering various factors, the Bank of Japan cannot rapidly raise interest rates.

The Bank of Japan is unlikely to rapidly raise interest rates to avoid budget impacts

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