A prime potential candidate to be Japan¡¯s next prime minister endorsed the Bank of Japan¡¯s policy of gradually raising interest rates, saying its normalization of monetary policy could push down prices and boost industrial competitiveness.

¡°The Bank of Japan is on the right policy track to gradually align with a world with positive interest rates,¡± ruling party heavyweight Shigeru Ishiba said in an interview.

¡°The negative aspects of rate hikes, such as a stock market rout, have been the focus right now, but we must recognize their merits, as higher interest rates can lower costs of imports and make industry more competitive,¡± he said.