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.