BOJ now paying the price for not hiking rates in a timely manner, says ex-policymaker

Former BOJ policymaker Yamamoto points out that the Bank of Japan is currently facing market pressure due to its failure to raise interest rates in a timely manner. He argues that the central bank should implement quarterly interest rate hikes, as the current policy rate remains significantly below the perceived neutral rate. His comments highlight the impact of pressure on the yen and Japanese government bonds, urging the BOJ to act decisively in managing monetary policy. He warns against easy interventions to control rising yields, emphasizing the long-term challenges the BOJ faces in balancing its inflation targets and fiscal measures. Yamamoto's remarks signal an increasing expectation for interest rate hikes in the financial markets, which could influence the exchange and bond markets moving forward.