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MNI BRIEF: Kishida Hopes BOJ Will Cooperate Closely With Govt

(MNI) Tokyo
(MNI) TOKYO

Prime Minister Fumio Kishida said on Wednesday that he strongly hopes the Bank of Japan under governor-elect Kazuo Ueda will work in close cooperation with the government in achieving economic growth accompanied by wage hikes.

Kishida's comments hint that he hopes the BOJ won't raise interest rates sharply, which would worsen the foundation for an economic recovery. (See MNI POLICY: Ueda's YCC Concerns Hint At BOJ Policy Shift)

The prime minister, appearing before the Lower House budget committee, said he hopes the BOJ conducts appropriate monetary policy, but didn’t elaborate on what kind of policy stance the BOJ would take.

He added that it was premature to comment on whether he sees the need to change a joint statement between the government and the BOJ made in 2013 as the new governor was yet to be approved.

Kishida also said he nominated former board member Kazuo Ueda to be governor as he has an ability to clearly communicate with market participants and the leaders of other central banks.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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