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On February 25th, former Bank of Japan Governor Haruhiko Kuroda stated that given the already strong economic situation, it is necessary to continue raising interest rates and tightening fiscal policy. He warned that Prime Minister Sanae Takaichis massive spending plan could trigger overheated inflation. Kuroda is known for his aggressive monetary stimulus policy launched in 2013, a key component of former Prime Minister Shinzo Abes "Abenomics" reflation strategy. He stated that with robust economic growth and steady wage increases, the Bank of Japan may raise interest rates approximately twice a year in 2026 and 2027. "Today, Japan faces inflation and a depreciating yen. Japan needs to shift to tighter fiscal and monetary policies. The Bank of Japan must gradually raise interest rates to a neutral level. Fiscal policy must also be tightened. I have doubts about whether increasing spending and tax cuts are appropriate." Kuroda warned that expansionary fiscal policy could backfire, exacerbating inflationary pressures and pushing up bond yields.Former Bank of Japan Governor Haruhiko Kuroda: Japans economy is in good shape, and it needs to tighten fiscal and monetary policies.Former Bank of Japan Governor Haruhiko Kuroda: The Bank of Japan is likely to raise interest rates twice a year in 2026 and 2027, bringing the rate up to around 1.5% to 1.75%.Former Bank of Japan Governor Haruhiko Kuroda: The yen is "somewhat too weak" at around 157 against the dollar recently.Former Bank of Japan Governor Haruhiko Kuroda: Japanese Prime Minister Sanae Takaichis spending and tax cut plans could exacerbate inflation and push up bond yields.