Source: Foundation for Economic Education
by Jake Scott
“On Monday, September 7, in Tokyo, an economist who has spent a year arguing that the Bank of Japan (BoJ) should wait to hike interest rates published a note saying it no longer can. Takuji Aida, who advises Prime Minister Sanae Takaichi, sits on her flagship growth-strategy panel, and 10 months ago he warned that a December rate rise would be quite risky. He now expects a rate rise from 1% on September 18, followed by three more rate hikes after that. Aida’s forecast is, in itself, unremarkable: markets seem prepared for such a shift, having nearly fully priced a quarter-point move to 1.25%, the highest rate the BoJ has risen to since 1995. What is remarkable is the source of the rise.” (09/15/26)
https://fee.org/articles/japans-reflationist-bet-is-running-out-of-road/