0835 GMT - The Bank of Japan should raise interest rates to at least above 1% if economic growth continues on greater flexibility in the job market and productivity improvements, says Masamichi Koike, deputy president and executive officer at Japanese megabank Sumitomo Mitsui Banking Corp. However, given that the country still hasn't completely overcome a deflationary mindset, "there may be a shock [to the economy] if the BOJ raises rates too rapidly," he says at an event in Tokyo. Meanwhile, Japan's corporate sector will likely witness more consolidations and bankruptcies this year as the economic recovery spurs healthy competition, he says. (megumi.fujikawa@wsj.com)
(END) Dow Jones Newswires
February 06, 2025 03:35 ET (08:35 GMT)
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