Key facts
- Former BOJ Governor Haruhiko Kuroda supports further interest rate hikes.
- Former Deputy Governor Masazumi Wakatabe urges caution on rate hikes.
- Kuroda believes the BOJ will examine raising rates by 25 basis points at each meeting.
- Wakatabe cited low real economic growth and cost-push inflation as reasons for caution.
- The BOJ's September rate hike brought the policy rate to 1.25%, a 31-year high.
Former Bank of Japan Governor Haruhiko Kuroda believes the central bank will likely consider raising interest rates at each upcoming meeting, according to his new book published this month. Kuroda's views contrast with those of his former deputy, Masazumi Wakatabe, who warned against premature rate hikes and urged policymakers to focus on boosting demand, citing concerns about cost-push inflation and low economic growth. The Bank of Japan has raised rates several times, most recently in September to 1.25%, a 31-year high, and is expected to declare victory in its 14-year battle to meet its price target.