Japan should aim for interest rates and prices to "keep moving,” according to Katsunobu Kato, a potential candidate for the country’s next prime minister.
"It’s clear that we have to head in this direction” where prices and rates aren’t stagnant, Kato said in an interview Tuesday, when asked whether Japan’s at a stage of raising rates further. Although caution is still needed for the immediate future given the market turmoil this month, Kato also said years of unmoving prices and rates had been damaging.
"That lack of movement created structural distortions,” said Kato. "We’re finally getting to a stage where rates can keep moving.”
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