Former Bank of Japan Executive: The Bank of Japan may raise interest rates as early as December.

Jin10 data reported on October 23 that former Bank of Japan executive board member Eiji Maeda stated that the Bank of Japan may raise interest rates as early as December, as the expansionary fiscal policy expected to be adopted by new Prime Minister Sanae Takaichi will help the economy withstand the impact of U.S. tariffs. Maeda also noted that the central bank should steadily advance further interest rate hikes, as the slow pace of rate increases is producing side effects, such as soaring housing prices in major cities and rising living costs for households due to the weakening yen. He said, “The Bank of Japan may have fallen behind the curve in responding to inflation risks, leading to some distortions in the economy. A slow pace of policy normalization will weaken the yen and accelerate inflation, thereby harming people's livelihoods. The Bank of Japan must be vigilant not only about the risks of economic downturn but also about the risks of rising prices.”