BOJ Gov. Ueda Holds “Frank” Talks with PM Takaichi

Tokyo, Nov. 18 (Jiji Press)–Bank of Japan Governor Kazuo Ueda said Tuesday that he had “frank” talks with Japanese Prime Minister Sanae Takaichi in their first one-on-one meeting on the day. “We had a frank and good conversation about the economy, prices, financial market conditions and monetary policy from various aspects,” Ueda told reporters after the meeting, held at the prime minister’s office. Takaichi, who took office about a month ago, has been calling for the continuation of monetary easing. Ueda said, however, that she made no particular request about the central bank’s monetary policy during the meeting. Ueda said he told Takaichi that achieving the BOJ’s 2 pct inflation target stably will help the country achieve long-term economic growth, and that the BOJ is gradually adjusting its monetary easing to meet the price target stably. Takaichi showed understanding for Ueda’s explanations, according to the central bank chief. Ueda said he and Takaichi also exchanged views on foreign exchange market developments, at a time when the yen is weakening against other major currencies. But he declined to elaborate. It is desirable for exchange rates to move stably in line with economic fundamentals, Ueda said, adding, “While cooperating with the government, we will closely monitor foreign exchange market developments and their impacts on the economy.” The BOJ is promoting its exit from large-scale monetary easing. The central bank is apparently planning to raise interest rates according to improvements in the economic and price conditions amid receding uncertainty over the high tariff policy of the administration of U.S. President Donald Trump. Financial market players expect the BOJ to raise its policy interest rate next month or in January 2026 in the first hike since January this year. “We will make appropriate decisions according to future data and information,” Ueda said of a possible rate hike after the meeting with Takaichi. On Wednesday last week, both Takaichi and Ueda attended a meeting of the government’s Council on Economic and Fiscal Policy. At the CEFP meeting, the prime minister stressed that it is important for monetary policy to be appropriately managed to help the country achieve both strong economic growth and stable price increases. “The government and the BOJ will continue working together to develop the national economy,” she also said. Former prime ministers have met regularly with BOJ governors. Shigeru Ishiba, Takaichi’s immediate predecessor, met with Ueda on Sept. 3. END [Copyright The Jiji Press, Ltd.]