Japan PM Takaichi voiced concern to BOJ's Ueda over further rate hikes

[TOKYO] Japanese Prime Minister Sanae Takaichi conveyed her reservations about further interest rate hikes when she met with Bank of Japan Governor Kazuo Ueda last week, the Mainichi daily reported on Tuesday (Feb 24), citing multiple unnamed sources.

If true, Takaichi’s resistance to an additional rate hike any time soon could complicate the BOJ’s timetable as coordination with the newly strengthened administration becomes more delicate. The yen weakened against both the dollar and euro in response to the report.

Ueda had characterised the meeting last Monday as a general exchange of views on economic and financial developments, and had said the prime minister had not made any specific monetary policy requests.

Takaichi herself has been coy about the particulars of their meeting, saying only that she hoped the central bank would work closely with the government to durably achieve its 2 per cent inflation target accompanied by wage gains.

The meeting was held amid simmering market speculation that the rising cost of living, driven in part by the weak yen, could prod the central bank to raise interest rates as soon as in March or April. REUTERS