Japan PM hopeful Takaichi: time not right for BOJ to raise rates

TOKYO (Reuters) – Sanae Takaichi, one of the leading contenders to replace Japanese Prime Minister Fumio Kishida, said on Friday that the Bank of Japan should hold off on further interest rate hikes to keep the country’s economic recovery intact.

“To be frank, interest rates should not be raised just yet. It would make it difficult to carry out capital expenditure. It would make it difficult for young people to obtain loans for home buying,” Takaichi said on her YouTube programme.

Japan’s ruling Liberal Democratic Party is set to hold an election on Sept. 27 to pick its next leader, who will become the prime minister given the party’s control of parliament. Kishida will not run in the race.