Ex-BOJ Official Warns of Stagnation Risk Without Rate Hike
Former policymaker Makoto Sakurai warns that the Bank of Japan risks repeating historical policy mistakes if it fails to raise rates in June. He argues that delayed action amid Iran war-induced inflation could force aggressive hikes later, potentially triggering economic stagnation.
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Former Bank of Japan policymaker Makoto Sakurai warned that Japan faces economic stagnation unless the central bank raises interest rates. The warning follows a surge in energy costs and inflation linked to the conflict in Iran. Investors are monitoring whether the central bank will act to prevent an asset bubble similar to the one that collapsed in 1989.
