BOJ Rate Hike Risk Revs Up Fiscal Reform Need, LDP Official Says

With the Bank of Japan likely to hike interest rates as soon as next week, the government needs to gets its fiscal house in order to mitigate financial risks, a senior lawmaker in the ruling Liberal Democratic Party said.

“Financial risks are increasing as the BOJ’s interest rate hike is in sight,” Yoshihisa Furukawa, leader of a panel on financial reform, told Bloomberg in an interview Tuesday. “We must continue our efforts to restore fiscal soundness on both the spending and revenue fronts,” he said.