Japan Finance Chief Denies Gap in Economic Views between Govt, BOJ

Tokyo, Dec. 2 (Jiji Press)–Japanese Finance Minister Satsuki Katayama indicated Tuesday that the government and the Bank of Japan share the view about the state of the domestic economy, an important factor for the central bank’s possible decision on an interest rate hike. “There is no gap” between the government and the BOJ regarding the view that the Japanese economy is moderately recovering, Katayama said at the press conference. BOJ Governor Kazuo Ueda said in a speech in the central Japan city of Nagoya on Monday that the central bank will make an appropriate decision on whether to raise its policy interest rate at its next monetary policy meeting Dec. 18-19, citing, among other things, receding uncertainties over the U.S economy and the high tariff policy of U.S. President Donald Trump’s administration. The remark was understood by many financial market players to indicate the BOJ’s readiness to implement an additional interest rate hike at an early date. The BOJ last raised the policy rate in January this year. Katayama said that the government “expects the BOJ to appropriately steer monetary policy” so that prices will rise 2 pct stably and sustainably accompanied by wage growth. The implementation of monetary policy is left to the BOJ, and Prime Minister Sanae Takaichi understands this, she said. END [Copyright The Jiji Press, Ltd.]