Japan government panel member calls for moderate BOJ rate hikes

TOKYO - The Bank of Japan should continue to raise interest rates at a moderate pace to rectify excessive yen declines, Toshihiro Nagahama, a government panel member known as an economic aide to Prime Minister Sanae Takaichi, said on Thursday.

Nagahama said he sees Japan's nominal neutral rate, or the level that neither cools nor overheats growth, at around 1.5%.

The central bank should thus raise its policy rate, currently at 1%, two more times at a pace of once every six months, he told a news conference.

"Moderate BOJ rate hikes are important in rectifying excessive yen weakness," Nagahama said.

(Reporting by Leika Kihara; Editing by Christian Schmollinger)

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This story was originally published July 2, 2026 at 1:27 AM.