Japan's Economic Advisor Nagase: BOJ Should Continue Gradual Rate Hikes

On July 2, Japan's economic advisor Nagase stated that the Bank of Japan (BOJ) should continue to raise interest rates at a moderate pace. He suggested that the BOJ should increase rates every six months, a pace that would not harm domestic investment. He emphasized that moderate rate hikes by the BOJ are crucial for correcting the excessive depreciation of the yen. Nagase expects the BOJ to raise rates by the end of this year and again in the summer of next year, after which rate hikes should be paused. He personally believes that a rate hike in June is appropriate, as delaying it could lead to further excessive depreciation of the yen, which would harm households.