Japan’s government will call for monetary policy that bolsters private demand, a draft of its long-term economic blueprint seen by Reuters showed, signalling a preference for keeping borrowing costs low and setting up potential policy tensions with the central bank.
The draft urges the Bank of Japan (BOJ) to align its decisions with Prime Minister Sanae Takaichi’s drive to reflate growth, citing legal provisions requiring the central bank to coordinate policy with the government.
The unusually explicit language underscores the Takaichi administration’s growing unease with further rate hikes as the BOJ exits years of ultra-loose policy, and signals a stronger push for coordination that could shape the timing and pace of tightening in the months ahead.
It also pledges the government will take “nimble and sufficient” steps to prevent a return to deflation while lifting long-term growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
Japan’s government will call for monetary policy that bolsters private demand, a draft of its long-term economic blueprint seen by Reuters showed, signalling a preference for keeping borrowing costs low and setting up potential policy tensions with the central bank.The draft urges the Bank of Japan (BOJ) to align its decisions with Prime Minister Sanae […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-70150","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n