Sanae Takaichi Advocates Caution on Interest Rate Hikes Amid Economic Recovery

Sanae Takaichi, Japan's minister in charge of economic security and a key candidate in the ruling party's leadership race, argues against raising interest rates at this stage. She emphasizes the fragility of Japan's economic recovery and the importance of not tightening fiscal policy prematurely.

Sanae Takaichi, Japan's minister in charge of economic security and a leading candidate in the ruling party's leadership race, has urged caution against raising interest rates prematurely.

Takaichi highlighted that the Japanese economy is only beginning to recover from stagnation and it is crucial to avoid tightening fiscal policy at this juncture. She made her statements on her personal YouTube channel, emphasizing the need to foster consumer sentiment.

The ruling Liberal Democratic Party (LDP) is set to choose a new leader on September 27. The central bank's recent policy shifts and future rate hike projections have become key points of debate among economic policymakers and experts.

(With inputs from agencies.)