Aida, who is also chief Japan economist at Credit Agricole, spoke to the Nikkei newspaper and said: “It would be quite risky for the BOJ to raise interest rates in December.”
He said a rate hike in December would be contrary to the government’s plan to stimulate the economy with large-scale spending. Ada then argued that it would be more plausible for the BOJ to raise rates in January next year, also when the economy is projected to register solid growth in fiscal 2026.
For some context, Japan’s Prime Minister Takachi has convened a prominent panel to debate her administration’s growth strategy and Aida is an economist chosen to be part of it. So, here’s what the bias tells you what that team looks like.
