PM Takaichi Asks BOJ Chief for Appropriate Monetary Policy

Tokyo, May 22 (Jiji Press)–Japanese Prime Minister Sanae Takaichi on Friday asked the Bank of Japan to carry out an appropriate monetary policy based on a government-BOJ joint statement on their coordination, BOJ Governor Kazuo Ueda said the same day. Takaichi made the request at a meeting with the central bank chief held at the prime minister’s office. “I explained my thinking on monetary policy as well” to the prime minister, Ueda also told reporters after the meeting, in which they exchanged opinions on recent developments in the economy, prices and financial markets amid the Middle East crisis. The prime minister and the BOJ governor regularly exchange opinions on economic and financial matters. Friday’s meeting was the first at the prime minister’s office since February and the third since Takaichi took office last October. Financial market players are keeping a close tab on whether the BOJ will decide to raise interest rates at its next policymaking meeting on June 15-16. In this regard, Ueda said that “we didn’t discuss specific issues” such as the timing of raising interest rates. “The prime minister spoke about the government’s economic measures,” including steps against inflation and growth investments, Ueda said. “We had a meaningful exchange of opinions on various issues,” he said, adding: “We want to continue close communication going forward. We are in agreement on this.” Concerns are increasing over an acceleration in inflation as crude oil prices are surging amid the Middle East tensions. Long-term interest rates are also on an uptrend due to growing inflationary pressure. Meanwhile, risks remain that the economy will deteriorate rapidly reflecting disruptions in supply chains for petrochemical products and other factors. Against the backdrop, the BOJ is carefully exploring the timing of an interest rate hike. END [Copyright The Jiji Press, Ltd.]