Japan government says it will not pre‑announce policy preferences to the Bank of Japan

Japan’s Economy Minister Minoru Kiuchi stated that the government will not convey any advance view on how the Bank of Japan should set interest rates, rejecting market worries about political interference. Kiuchi emphasized that the BOJ retains full discretion over the timing and scale of rate hikes or cuts, although the two bodies will continue to share information on the economy, prices and financial developments.

The remarks follow a draft economic blueprint that highlighted the importance of monetary policy being appropriately guided to achieve a stronger economy, prompting speculation that the new administration might pressure the BOJ to delay rate hikes. Kiuchi clarified that no change has been made to the government's stance on BOJ independence.