I think many of the western business media outlets are fearmongering on Japan and its debt. This article actually talks about the problems instead of going 'hike rates now'.

Japan has a large amount of Government debt (in its own currency), if they raise rates too much, the private bondholders (which include large corps) gets free money, some of it will be exchanged for foreign currencies depreciating the exchange rate further.

While personal funds in Japan, in pursuit of higher returns, keep flowing overseas, international institutional investors have borrowed large amounts of yen to invest in foreign currencies, which has forced the yen's further depreciation.

Also why finance sector should be under state control and capital flows regulated like in China. Japan could've maintained their low interest rate policy while also preventing some of the depreciation.