Post by : Shakul

Japan’s Finance Minister Satsuki Katayama has urged the country’s trade minister to refrain from making public comments on monetary policy, emphasizing that such decisions fall under the authority of the Bank of Japan.

The statement comes after Economy, Trade and Industry Minister Ryosei Akazawa suggested that an interest rate hike in April could be considered to support the national currency. His remarks sparked discussions about government influence on central bank decisions.

Katayama clarified that under Japanese law, monetary policy tools and decisions are solely determined by the central bank. She added that both she and Prime Minister Sanae Takaichi had advised Akazawa to avoid making such statements in the future.

The finance minister stressed that maintaining the independence of the central bank is essential for economic stability and market confidence. She noted that policy communication must remain consistent and aligned with institutional roles.

Akazawa later declined to comment on his discussion with Katayama but reiterated that decisions regarding monetary policy rest entirely with the Bank of Japan.

Market expectations regarding a possible interest rate hike in April have weakened due to ongoing global uncertainties, including geopolitical tensions. This has made the outlook for Japan’s already fragile economy more uncertain.

Katayama also addressed rising long-term government bond yields, which recently reached near three-decade highs. She stated that Japan will continue its debt management strategy through close coordination with financial markets and regular bond auctions.

#world news #Economy #Policy