Min Joo Kang of the Dutch International Group said in a report that the Bank of Japan's move to raise interest rates may be “quite moderate.” The group's senior economist responsible for the Japanese and South Korean economies pointed out that due to concerns about long-term fiscal conditions and increasing debt burdens, the Japanese financial market may continue to be unstable, which may affect the country's economic performance. “Further fiscal stimulus could be counterproductive to the economy,” she said. She also said that the current administration is likely to maintain its expansionary policy stance, which poses significant risks to the economy in 2026. The Dutch International Group believes that the Bank of Japan's next rate hike will most likely take place in October.

Zhitongcaijing · 3d ago
Min Joo Kang of the Dutch International Group said in a report that the Bank of Japan's move to raise interest rates may be “quite moderate.” The group's senior economist responsible for the Japanese and South Korean economies pointed out that due to concerns about long-term fiscal conditions and increasing debt burdens, the Japanese financial market may continue to be unstable, which may affect the country's economic performance. “Further fiscal stimulus could be counterproductive to the economy,” she said. She also said that the current administration is likely to maintain its expansionary policy stance, which poses significant risks to the economy in 2026. The Dutch International Group believes that the Bank of Japan's next rate hike will most likely take place in October.