Japan's Kiuchi Urges BOJ-Government Coordination on 2% Inflation Goal as 1% Rate Looms
Updated
Updated · The Edge Malaysia · Jun 9
Japan's Kiuchi Urges BOJ-Government Coordination on 2% Inflation Goal as 1% Rate Looms
3 articles · Updated · The Edge Malaysia · Jun 9
Summary
Minoru Kiuchi said he wants the Bank of Japan to work closely with the government to durably achieve its 2% inflation target, while leaving specific policy steps to the central bank.
A BOJ rate increase to 1% from 0.75% is widely expected at the policy meeting ending June 16, unless a sharp escalation in the Middle East conflict jolts markets.
Kiuchi said recent rises in Japanese government bond yields reflect market supply-demand conditions and a moderate economic recovery, adding the government will watch how higher rates affect the economy.
Higher global bond yields, including in Japan, have been driven by concern that Middle East-related fuel price gains could lift inflation faster than central banks can respond.