Overview

• Ken Saito said the BOJ must be cautious on further rate hikes to avoid derailing Japan’s fragile recovery under the weight of US tariffs.
• He warned higher US levies could cut automakers’ profits and constrain their ability to raise wages, challenging the central bank’s inflation outlook.
• Saito urged Prime Minister Shigeru Ishiba to resign and for the LDP to seek a third coalition partner under fresh leadership.
• The ruling LDP–Komeito coalition lost control of both houses of parliament and now requires opposition support to pass legislation.
• He rejected calls for sales tax cuts, advocating growth policies aimed at creating a sustainable cycle of rising wages and prices.