TOKYO, March 10 (Reuters): Japan’s Prime Minister Sanae Takaichi is facing renewed scrutiny over her stance on monetary policy after a lawmaker questioned whether she pressured the Bank of Japan to delay further interest rate hikes.
During a parliamentary session on Tuesday, a lawmaker asked Finance Minister Satsuki Katayama whether the prime minister had urged central bank officials to avoid tightening policy.
The issue surfaced after reports suggested Takaichi expressed reservations about additional rate hikes in a meeting last month with BOJ Governor Kazuo Ueda. The speculation raised concerns that the government might influence the central bank’s decisions.
Katayama told parliament she had nothing to add beyond Ueda’s public remarks after the meeting, where he said the prime minister had made no specific policy request.
She emphasized that monetary policy decisions fall under the jurisdiction of the Bank of Japan and should remain that way, while noting that the government and the central bank must still coordinate their broader economic goals.
Katayama also said both sides aim to achieve Japan’s 2 percent inflation target in a stable way, driven by wage growth rather than rising costs.
The finance minister declined to provide further details, describing the issue as a sensitive matter involving two legal principles: the BOJ’s independence in setting monetary policy and the requirement that its decisions remain compatible with the government’s economic policies.
The Bank of Japan raised its short-term policy rate to 0.75 percent in December, the highest level in three decades, after concluding that Japan was close to achieving sustained 2 percent inflation. Governor Ueda has indicated the central bank may continue raising rates but has not specified when further increases could occur.
Rising global oil prices linked to tensions in the Middle East have complicated the BOJ’s outlook. Japan relies heavily on imported fuel, and higher energy costs could both slow economic growth and increase inflationary pressure.
