- Japan must raise neutral rate of interest via fiscal policy, growth strategy
- If Japan’s neutral rate rises as a result of fiscal policy, it would be natural for BOJ to hike rates
- But for now BOJ should avoid premature rate hike, excessive monetary tightening
- Sanaenomics carries over elements of Abenomics but focuses more on strengthening supply side of the economy
Well, take his comments here with a pinch of salt as he is part of the government panel recruited by Japan prime minister Takaichi
BOJ should avoid premature rate hike, says ex-deputy governor