Investing.com — Japan’s ruling party chief Sanae Takaichi stated Thursday that while the Bank of Japan is responsible for determining monetary policy means, any decisions must align with government objectives.
In a television interview, Takaichi emphasized the importance of coordination between the central bank and government policies, though she noted there was no immediate need to revise the government-BOJ joint agreement.
Regarding currency matters, Takaichi acknowledged both advantages and disadvantages of a weak yen, explaining it provides a buffer for exports but increases import costs. She stated she does not want to trigger excessive declines in the Japanese currency.
When asked about Japanese government bonds, Takaichi highlighted their stability, noting they are “overwhelmingly” held by domestic investors and that Japan’s bond market is “the most stable in the world.”
Takaichi also addressed fiscal concerns, stating, “I have never said Japan doesn’t need to be mindful of fiscal discipline.”
On inflation, she indicated Japan must achieve demand-led inflation but is currently experiencing cost-led inflation. Takaichi declined to comment when questioned about the likelihood of a near-term BOJ rate hike and stock market movements.
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