Former central bank chief Kuroda calls for higher rates and tighter fiscal policy in Japan
Former Bank of Japan chief Haruhiko Kuroda warned that high government spending could fuel inflation. He urged the central bank to keep raising interest rates.
Haruhiko Kuroda, the former governor of the Bank of Japan 
JP, publicly called for the nation to raise interest rates and tighten fiscal policy on February 25, 2026. Speaking on the current state of the economy, Kuroda argued that the domestic financial environment is now strong enough to sustain higher borrowing costs. He specifically warned that Prime Minister Sanae Takaichi's spending plan could exert additional inflationary pressure on a system already grappling with rising prices.
JP, publicly called for the nation to raise interest rates and tighten fiscal policy on February 25, 2026. Speaking on the current state of the economy, Kuroda argued that the domestic financial environment is now strong enough to sustain higher borrowing costs. He specifically warned that Prime Minister Sanae Takaichi's spending plan could exert additional inflationary pressure on a system already grappling with rising prices.
