Economics
Divergence on BOJ Policy Emerges Among PM Candidates in Japan
- Kono, Motegi have indicated support for hiking rates
- Dovish outlier Takaichi argues for continued monetary easing
Fumio Kishida during a news conference in Tokyo.
Photographer: Philip Wong/AFP/Bloomberg
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As Japan’s race for a new premier heats up, candidates will be scrutinized for their views on monetary policy, with the shake-up coming at a pivotal moment when the economy is just emerging from decades of deflation.
A recent episode illustrates the risks for politicians when they weigh in on central bank policy. Ahead of the Bank of Japan’s board meeting in July, Digital Minister Taro Kono — a potential contender to become the next leader — said authorities should hike interest rates to support the yen.