Nakao Urges BoJ to Raise Rates to Combat Yen Weakness

A former senior Ministry of Finance official in Japan has urged the Bank of Japan to raise interest rates at every policy meeting to narrow the yield differential with the U.S. and ease downward pressure on the yen.

Takehiko Nakao, who previously served as Vice-Minister for International Affairs at Japan's Ministry of Finance, believes that raising interest rates above 2% would help to address the yen's weakness.

Nakao noted that even though Japan has raised its policy rate to 1%, real interest rates remain negative, whereas real interest rates in other countries have already turned positive.