A Bank of Japan move to raise interest rates at a time when the government is calling on companies to invest more would likely send a mixed message on policy, according to the leader of Japan’s ruling coalition partner.
“We are at a point where we are calling for more investment in the private sector, and such a move could seem like a contradictory measure,” Japan Innovation Party co-leader Fumitake Fujita said in an interview with Bloomberg News on Wednesday, referring to an increase in borrowing costs. “Our basic stance is that restraint needs to be exercised regarding the timing.”