Japanese economic expert: Japan's economy faces multiple challenges

Data from Japan's Ministry of Internal Affairs and Communications on October 30 shows that Tokyo's core CPI, excluding fresh food, rose 2.6% year-on-year in October, while the national CPI rose 2.1% year-on-year in September, indicating an accelerating upward trend. Nomura Securities Chief Economist Kyohei Morita said that the Bank of Japan may continue to raise interest rates and gradually adjust its accommodative monetary policy, but the purpose of rate hikes is to achieve price stability, and raising rates too quickly could increase the burden on companies and mortgage holders. Rising prices are squeezing purchasing power and increasing operating costs, leaving Japan's economic policy facing a "dilemma": if monetary policy continues to tighten, the risk remains that a weak yen and rising import costs will push prices higher; if interest rates are raised too quickly or economic activity is further suppressed, the economy will face even more severe challenges.