CDP leader calls for gradual BOJ rate hikes

The Bank of Japan must raise interest rates and continue to phase out its controversial stimulus program, Yoshihiko Noda, the leader of the opposition Constitutional Democratic Party of Japan (CDP), said Friday.

He also said Japan needs to focus more on getting its fiscal house in order by ending big, crisis-mode spending and finding ways to boost tax revenues, such as raising the capital gains tax rate.

The CDP, Japan’s largest opposition party, is expected to wield significant clout in parliament following big gains in a general election on Oct. 27 — though it remained short of a majority.