Japan's Opposition Leader Urges BOJ to Implement Gradual Interest Rate Hikes

Forex - Yoshihiko Noda, the leader of Japan's largest opposition party, stated that the Bank of Japan (BOJ) should continue to raise interest rates and gradually phase out its controversial stimulus program. Noda, the leader of the Constitutional Democratic Party of Japan (CDPJ), remarked, "It is wrong to focus too much on keeping monetary policy excessively loose while inflation is being experienced in Japan." He mentioned that the BOJ should gradually eliminate the remnants of the radical stimulus program initiated by former Governor Haruhiko Kuroda, which caused various side effects, such as extreme yen weakness. Noda argued that a weak yen has done more harm than good to the Japanese economy by increasing import costs and adversely affecting households. He added, "The BOJ should gradually raise interest rates without committing to a specific pace, cautiously monitoring economic and overseas developments." Noda's party gained strength in the general elections held on October 27, achieving a significant victory, although it did not secure a majority.