Suntory CEO Takeshi Niinami has urged the Bank of Japan (BOJ) to continue its gradual interest rate hikes, aiming for a 1% rate by next year. Niinami, who also heads one of Japan’s largest business lobbies, believes this is still lower than the current inflation rate. He sees the BOJ’s recent rate hike to 0.25% as a positive sign of commitment to further increases. Niinami argues that a gradual approach would give small and medium-sized enterprises (SMEs) time to adjust to a tighter borrowing environment.
Despite the yen’s recent rally, Niinami remains concerned about its weakness. He sees it as adding inflationary pressure on consumers, businesses, and the government’s finances.
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In addition to his views on monetary policy, Niinami addressed Suntory’s future plans. He denied rumors of an acquisition of American brewer Boston Beer, emphasizing their partnership in the ready-to-drink (RTD) market. Suntory aims to grow its RTD business, targeting Gen Z consumers, and plans to expand its markets in China, Europe, and the United States. The company seeks to increase the RTD share of its spirits business to 20%-25% over the next five years.