Veteran lawmaker calls for steady rollback of stimulus
Japan39;s low rates causing weak yen, keeping real wages low
Remarks highlight political attention to weakyen pain
BOJ should ditch 2 inflation target, set looser goal
TOKYO, Nov 14 Reuters The Bank of Japan should raise interest rates at least to 1 to roll back an abnormally huge stimulus that is causing unwelcome falls in the yen, said Takeshi Shina, the shadow finance minister of the country39;s largest opposition party.
The central bank should normalise monetary policy steadily and clarify its intention to do so as its shortterm policy rate, currently at 0.25, is well below levels deemed neutral to the economy, Shina told Reuters in an interview on Thursday.
The BOJ39;s mandate is to achieve price stability but that isn39;t being met, as the huge U.S.Japan interest rate gap is causing yen falls that push up the cost of living, said Shina, known as a vocal critic of ultraeasy monetary policy.
The BOJ should keep raising rates to 1 in several stages to roll back an excessive degree of monetary stimulus, he said.
As a member of the lower house39;s financial committee, Shina has frequently summoned BOJ governors, including incumbent Kazuo Ueda, to parliament for grilling on monetary policy.
His remarks highlight how concern over the demerits of a weak yen will remain a key topic of debate among politicians, and complicate the timing of the BOJ39;s next interest rate hike.
Japan39;s neutral rate of…