politics

Former S&P Global Executive Urges BOJ to Raise Policy Rate to 1.5% to Combat Inflation

29 Temmuz 2026Japan Times

Economist Paul Sheard has suggested that the Bank of Japan (BOJ) should raise its policy rate to 1.5% to combat inflation driven by rising import prices due to the yen's depreciation. This recommendation highlights the challenges Japan faces as it navigates a weak currency and its impact on the economy.
Sheard's insights reflect growing concerns over inflationary pressures in the country.
Japan has been grappling with a weak yen, which has led to increased import costs and rising inflation. The BOJ has maintained a loose monetary policy for years, aiming to stimulate growth and achieve its inflation targets.
The call for a rate hike by Sheard underscores a critical juncture for the BOJ as it must balance the need for economic stimulus with the realities of rising inflation. A 1.5% policy rate could potentially stabilize the yen and mitigate import price pressures, but it may also risk stifling economic growth if impleme…

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