Small font size A Larger text size A Largest text size A

Takaichi adviser calls for caution over BOJ interest rate hikes

BY Reuters | ECONOMIC | 10/09/25 05:25 AM EDT

TOKYO, Oct 9 (Reuters) - The Bank of Japan should be cautious about raising interest rates further as Japan's gradual return to an inflationary mindset could be disrupted by any premature tightening, said Etsuro Honda, a close economic adviser to Sanae Takaichi, who is likely to become the country's next prime minister.

"Japan is at a delicate stage right now, where the long-standing deflationary mindset is gradually giving way to a more positive inflationary outlook," Etsuro Honda, who advises Takaichi on economic policy, told Reuters in an interview.

Pointing to a recent surge in Japanese stock markets driven by optimism over Takaichi's reflationary policies, Honda said: "I genuinely hope they don't raise rates now."

"Of course, it's entirely up to the BOJ," he added. (Reporting by Makiko Yamazaki and Yoshifumi Takemoto; Editing by Hugh Lawson)

More Fixed Income News

New York Fed met with banks over key lending facility, FT reports BY Reuters |ECONOMIC 11/14/25 08:25 PM EST
New York Fed met with banks over key lending facility, FT reports BY Reuters |ECONOMIC 11/14/25 08:21 PM EST
As Fed hawks press their case, traders bet against December cut BY Reuters |ECONOMIC 11/14/25 07:41 PM EST
New York Fed convened meeting with banks over key lending facility, FT reports BY Reuters |ECONOMIC 11/14/25 07:06 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article