Japan government says it will not pressure Bank of Japan on interest rates

Japan’s administration is reviewing language in its annual economic blueprint after market concerns that the wording could be used to pressure the Bank of Japan (BOJ) to keep rates low. The draft originally described it as “very important for monetary policy to be guided appropriately to achieve a stronger economy,” prompting fears of government interference. A revised version now emphasizes “stable inflation” while still noting that BOJ decisions should align with the government’s economic agenda. Economy Minister Minoru Kiuchi reiterated that the government will never convey any advance preference on the timing or scale of BOJ rate moves, stressing that monetary policy decisions remain the BOJ’s responsibility. The BOJ has already raised its policy rate twice since the new prime minister, Sanae Takaichi, took office, reaching a 31‑year high of 1%, and says it will continue to tighten if inflation pressures rise.