Japan Minister Urges BOJ Coordination on Inflation
Minister Minoru Kiuchi expects the BOJ to coordinate with the government on inflation. Markets now prepare for a potential interest rate hike later this month.
Economic Revitalisation Minister Minoru Kiuchi requested the Bank of Japan coordinate policy with the government to durably achieve its 2% inflation target. The Bank of Japan is expected to raise its short-term policy rate to 1% from 0.75% on June 16. The potential move follows rising Japanese government bond yields and a moderate economic recovery.
Kiuchi stated that specific monetary measures remain the prerogative of the Bank of Japan. He noted that recent rises in Japanese government bond (JGB) yields reflect market supply-demand dynamics. Kiuchi committed to scrutinizing rate moves and their economic effects through various channels.
