Ex-BOJ policymaker says Japan's era of low rates, big spending is over

Former Bank of Japan board member Asahi Noguchi told Reuters that Japan no longer needs expansionary fiscal and monetary policy, projecting another rate hike by December as global central banks turn hawkish.
Noguchi, a reflationist who served at the BOJ until March, said underlying inflation is near the 2% target and wages are embedding at consistent levels — making demand-boosting policy too risky.
The BOJ raised rates in June and September as the Iran war energy shock added to import-cost pressure from a weak yen, and Noguchi sees a hike to 1.5% from 1.25% in December.
The yen has hovered near 158 per dollar, close to the 160 line markets see as triggering intervention — a headache as imported food inflation bites.


