Former Bank of Japan chief economist says interest rates may be raised three times this year

A former chief economist of the Bank of Japan said that from the perspective of the space to adjust excessively loose policies, the Bank of Japan may raise interest rates up to three times this year, and the next action may be as early as June.

A former chief economist of the Bank of Japan said that from the perspective of the room to adjust excessively loose policies, the Bank of Japan may raise interest rates up to three times this year. The next action may be as early as June.
This may sound extreme. But it doesn’t matter if interest rates are raised in June, economist Toshitaka Sekine said in an interview on Wednesday.
Sekine\’s view is more hawkish than that of most BOJ watchers, although a growing number of analysts point to the risk of a rate hike in July as a weaker yen heightens the risk of a higher price trend.
Sekine believes that the Bank of Japan will adopt an opportunistic policy approach and gradually reduce easing when possible while the real interest rate is still significantly negative.
\”My feeling is that if the conditions are favorable enough, there will be no problem even if the central bank raises interest rates three times this year,\” said Sekine, now an economics professor at Hitotsubashi University.
There is no need to say that the central bank will hit the ceiling at 0.25% or 0.5%.
As long as the environment permits, they can gradually increase interest rates.

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