A former executive at S&P Global has called for the Bank of Japan to raise its benchmark policy rate to 1.5%, arguing that the central bank needs to accelerate its normalization cycle to ensure sustainable economic growth.
The intervention adds a high-profile voice to the growing chorus of economists and market participants urging Tokyo’s central bank to move more aggressively against inflation risks.
The call for a 1.5% rate level represents a significant departure from the ultra-loose monetary policy that has defined the BoJ’s approach for over a decade.
The recommendation comes as expectations for further tightening have solidified across financial markets.
According to recent polling data, a majority of economists now forecast that the BoJ will implement another rate increase before the end of December, with some analysts pointing to October as a potential target date for the next move.
This shift in consensus reflects growing confidence that Japan’s economy can withstand higher borrowing costs without derailing its fragile recovery.
The call for a 1.5% rate level represents a significant departure from the ultra-loose monetary policy that has defined the BoJ’s approach for over a decade.