TOKYO: Japan no longer needs expansionary fiscal and monetary policies aimed at boosting demand, former Bank of Japan (BOJ) board member Asahi Noguchi told Reuters, projecting another interest rate hike by the central bank in December.
The remarks by Noguchi, a reflationist academic who served at the BOJ until March, highlight how years of rising inflation and wages are causing a shift in mindset among those who were once advocates of big spending and loose monetary policy.
"Underlying inflation is near the BOJ's 2.0 per cent target and wages are becoming embedded at levels consistent with 2.0 per cent inflation. If so, it would be too risky to implement policies that boost demand," Noguchi said in an interview on Friday.
