Japan’s Kono Says Central Bank Needs to Raise Rates to Lift Yen
- Kono has sought to lead the LDP and become prime minister
- Bank of Japan policy board holds meeting at end of month
Taro Kono
Photographer: Noriko Hayashi/BloombergThis article is for subscribers only.
A prominent minister running Japan’s digital agency left the door open for a bid to become prime minister as he called on the central bank to increase interest rates to boost the value of the yen and bring down energy and food costs.
Speaking on Bloomberg Television on Wednesday, Kono Taro highlighted the problems generated by the yen’s sharp decline against the dollar, including the inflationary effect on domestic prices. Kono said that while a cheaper yen can help boost exports, the benefit to the country was now limited because many Japanese companies have production facilities overseas.