Japan’s veteran lawmaker Kono urges BOJ to raise rates

By Leika Kihara

TOKYO (Reuters) -Japan must balance its budget and push the central bank to raise interest rates to alleviate concern over the country’s finances, Taro Kono, touted as a candidate to become the next prime minister, said on Wednesday.

Kono also criticised former Prime Minister Shinzo Abe’s “Abenomics” reflationist policies, saying the country needs to shift to policies that focus more on structural reforms and cuts to government expenditure.

The remarks by Kono, a former minister in charge of digitalisation, pit him against Sanae Takaichi, another candidate vying for the premiership, who has advocated in favour of big spending and loose monetary policy.

“The size of the budget has been growing and growing, so it’s time for us to say we really need to balance the budget,”