Japan’s Ex FX-Chief Says Rate Hike Needed for Stable Market

Japan’s former currency chief said the Bank of Japan is “behind the curve” on taking policy action, adding that higher interest rates would help address inflation and stabilize markets.

“Steady and gradual interest rate hikes can respond to inflation, curb excessive yen depreciation and stabilize long-term bond yields,” Takehiko Nakao, former vice finance minister for international affairs, said in an interview with Bloomberg on Monday.