Etsuro Honda, a former adviser to late Japanese Prime Minister Shinzo Abe, has expressed opposition to ending negative interest rates prematurely, warning that such action by the Bank of Japan could push the economy back into deflation. Speculation is growing that the central bank may abandon negative rates in March or April, anticipating higher pay raises from major firms. However, Honda believes it is too early, emphasizing that negative rates are primarily used for inter-bank operations and may not be suitable for corporations at this stage. Honda was a key architect of the ‘Abenomics’ stimulus policy.
Former adviser to shinzo abe opposes premature end to negative interest rates, warns of deflation risk.
