Former official says the Bank of Japan should be cautious about raising interest rates as the government is fully committed to promoting growth.

A former member of the Bank of Japan's policy board said that while the government is doing everything it can to boost the economy, the Bank of Japan should take a cautious approach to raising interest rates. Harada Yasushi said in an interview that the Japanese government should fully utilize fiscal, monetary, and tax policies to stimulate demand and achieve the so-called "high pressure" economy. "If the action is taken too quickly, it may lead to excessive tightening," Harada said when discussing the impact of the central bank's rate hikes on the economy. He pointed out that the current inflation is partly due to supply-side factors, including the rise in rice prices, and added that further rate hikes may have limited impact on cost-driven price pressures.