TOKYO : Japan's central bank should hike interest rates to ensure the country will not fall out of lockstep with the rest of the world in its monetary policy, an associate of Prime Minister Fumio Kishida whose ideas likely inspired the premier's economic policy framework said.
As the U.S. Federal Reserve and other central banks move forward with hiking interest rates, the Bank of Japan should follow along to avoid Japan's yield spreads widening too much, according to Hara, who published a book in 2009 also called"New Capitalism". Hara got to know Kishida during the premier's 2012-2017 stint as foreign minister when Hara was serving as adviser to Japan's Cabinet Office, which oversees the government's long-term economic planning.
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