The Bank of Japan shouldn’t raise interest rates again before March next year, according to Democratic Party for the People leader Yuichiro Tamaki, a key potential ally for Japan’s weakened government.
The central bank needs to closely examine the results of next year’s wage deal results before moving on policy again, Tamaki said in an interview Friday.
"Until we achieve nominal wage growth 2% above inflation, we should continue with monetary easing and proactive fiscal spending,” Tamaki said. "We are still in a very important phase, trying to get out of the 30 years of deflation, so we want to make that our top priority first. We will avoid any increase in the burden on people.”
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