Economy and Finance Minister KIUCHI said on Friday the government will not
pre-communicate its preferences on how the Bank of Japan should set interest
rates and will not advise on timing or size of rate moves, reiterating that the
BOJ decides specific monetary policy tools. His remarks sought to calm markets
after a draft economic blueprint urged “appropriately guiding monetary policy”
and cited a legal clause requiring the BOJ to align with the government’s
economic agenda while omitting language on the bank’s legal
independence—phrasing that had raised concern the dovish-leaning Prime Minister
Sanae Takaichi government might pressure the BOJ to delay tightening. KIUCHI
added the government and the BOJ should nonetheless share assessments of the
economy, prices and financial conditions.
