Japanese Prime Minister Sanae Takaichi reportedly expressed concerns about further interest rate hikes during a meeting with Bank of Japan Governor Kazuo Ueda last week. According to a Mainichi Shimbun report, Takaichi's stance could complicate the Bank of Japan's plans, as it may challenge coordination with the new government. The yen weakened against the dollar and euro following the report.
Governor Ueda stated that the meeting primarily involved a general discussion on economic and financial conditions, with no specific monetary policy requests from the prime minister. Takaichi emphasized the importance of the central bank working closely with the government to achieve a 2% inflation target alongside wage growth. This meeting occurred amid market speculation that the Bank of Japan might raise interest rates in response to rising living costs and a weak yen.
Japanese PM Takaichi Expresses Concerns Over Interest Rate Hikes to BOJ Governor
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