A senior adviser to Japanese Prime Minister Sanae Takaichi says the Bank of Japan is unlikely to raise interest rates before March, arguing policymakers must first confirm that a major fiscal package is lifting domestic demand.Goushi Kataoka — a former BOJ board member and now part of Takaichi’s economic strategy panel — told Bloomberg he expects a supplementary budget of around ¥20 trillion, far larger than last year’s ¥13.9 trillion package. If deployed effectively, he said stimulus could boost demand early next year, potentially creating room for a rate hike “as soon as March.”Kataoka said Japan’s economy “is not necessarily in a favorable state,” noting the Q3 GDP contraction and core inflation (excluding food and energy) still below 2%. Logically, he said, a January hike is “not highly likely.”Kataoka’s caution echoes comments last week from former Deputy Governor Masazumi Wakatabe, who also cited weak economic conditions. Their views highlight growing tension between market expectations of early tightening and advisory-panel calls for patience.Prime Minister Takaichi met BOJ Governor Kazuo Ueda on Tuesday. Ueda said he explained the bank’s gradual normalisation process, and Takaichi signalled understanding. Kataoka added he does not expect the prime minister to pressure the BOJ when it meets on December 19 despite her past criticisms of rate hikes. This article was written by Eamonn Sheridan at investinglive.com.