Nomura: Japan's Prime Minister's economic blueprint may affect the timing of BOJ's rate hike

Mars Finance News, July 2 — Takahide Kiuchi, an economist with Nomura Research Institute, said that if Japanese Prime Minister Sanae Takaichi uses her “Basic Policy” economic blueprint (expected to be approved by the cabinet this month) to prevent further interest rate hikes, it could delay the timing of the Bank of Japan’s next move. He said: “Even if the government opposes it, the Bank of Japan will raise interest rates when it deems it necessary, but to a certain extent it may respect the government’s wishes regarding the timing of rate hikes.” He also added: “Government pressure opposing the Bank of Japan’s interest rate hikes could further weaken the yen and cause bond prices to fall, which would undermine the stability of the country’s economy and financial markets.” (Jin Shi)
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