BOJ Should Hike Policy Rate to 1.5%: Renowned Economist's Proposal

A renowned economist is calling on the Bank of Japan to raise its policy rate to 1.5%. According to Sheard, former executive vice president at S&P Global Inc., the central bank should increase its unsecured overnight call rate target by 0.25 percentage point twice to achieve this goal.

This would be a somewhat bolder monetary policy approach after taking a careful consideration of concerns that deflation might return if rates are raised too quickly, Sheard explained in an interview on July 27.