Former Haruhiko Kuroda, who led Japan’s central bank for a decade, called for continued interest rate increases and tighter fiscal policy, warning that Premier Sanae Takaichi’s proposed spending could overheat the economy.

The Bank of Japan (BOJ) held its key interest rate at 0.5% on Thursday, as expected, but reaffirmed plans to raise borrowing costs if inflation and growth stay on track — keeping open the possibility of a December rate hike.

Prime Minister Shigeru Ishiba’s resignation has injected fresh uncertainty into Japan’s political and economic landscape, raising questions over the timing of the Bank of Japan’s next interest rate hike.

On Thursday, many Asian stocks increased in value, driven by gains in technology shares that followed a strong performance by Nvidia the previous night, News.Az reports.