EXCLUSIVE: PM Takaichi Urged BOJ in May to Buy JGBs to Rein in Yields

Tokyo, Aug. 4 (Jiji Press)–Prime Minister Sanae Takaichi urged Bank of Japan Governor Kazuo Ueda at their meeting in May to buy Japanese government bonds if necessary to curb rising long-term interest rates, informed sources told Jiji Press Tuesday. It is unusual for the prime minister to mention a specific monetary policy tool. The reported request could spark a debate over the central bank’s independence. According to the sources, Takaichi told Ueda during their 20-minute meeting at the prime minister’s office on May 22 that she would like the BOJ to understand her cabinet’s policy agenda and conduct appropriate monetary policy accordingly. At a time when the BOJ is reducing its JGB purchases, the prime minister sought an appropriate response to ensure market stability, asking the central bank to buy JGBs if necessary. Ueda replied that it is necessary to consider market reactions and added that the central bank would respond if circumstances warrant doing so, the sources said. END [Copyright The Jiji Press, Ltd.]