Japan's economic blueprint affirms BOJ independence on monetary policy

Japan’s government will state in its July economic blueprint that decisions on specific monetary policy tools are to be left to the Bank of Japan. The wording will appear in a footnote citing a legal clause that protects the central bank’s independence, a change made after an earlier draft that had prompted a sell‑off in the yen and bonds.

The final blueprint also says the cabinet will decide by early August whether to reduce the 8 % consumption tax on food. Prime Minister Sanae Takaichi’s administration and its reflation‑ist advisers have urged the BOJ to proceed cautiously with further rate hikes. The document is expected to be approved by the cabinet on Tuesday.

“To achieve a strong economy, it is very important for monetary policy to be conducted appropriately to see stable price rises,” the blueprint reads.