Ex-BOJ Chief Kuroda Calls for Rate Hikes, Fiscal Tightening- Reuters

Former Bank of Japan Governor Haruhiko Kuroda told Reuters on Wednesday that Japan must continue raising interest rates and tighten fiscal policy as the economy is already in great shape. Kuroda, who led the central bank from 2013 to 2023 and implemented ultra-loose monetary policies during his tenure, now believes that Japan's economic conditions have improved sufficiently to allow for policy normalization. His comments come as the current BOJ leadership has been gradually moving away from its longstanding negative interest rate policy, signaling a potential shift in Japan's monetary approach after years of combating deflation. The former governor's stance suggests that Japan may have reached a turning point where traditional monetary policy tools can be effectively deployed without risking economic stability, potentially marking the end of an era of unprecedented monetary accommodation in the world's third-largest economy.