Ishiba Suggests BOJ Rate Hike Not Appropriate Now

Tokyo, Oct. 2 (Jiji Press)--New Japanese Prime Minister Shigeru Ishiba suggested Wednesday that it is not appropriate for the Bank of Japan to raise interest rates further in the current situation.

"Personally, I don't think (Japan is) now in such an environment (warranting an additional BOJ rate hike)," Ishiba told reporters at the prime minister's office after meeting with BOJ Governor Kazuo Ueda.

The Ishiba-Ueda meeting came just a day after Ishiba took office. It is rare for a new prime minister to meet with the BOJ governor at such an early stage.

After the Japanese stock market plunged earlier this week in a so-called "Ishiba shock" over concerns about his economic policies, the meeting was apparently aimed at promoting stability in financial markets by emphasizing close cooperation between the government and the central bank.

Ishiba had been seen by some as negative on former Prime Minister Shinzo Abe's inflationary policy mix dubbed "Abenomics" and positive on BOJ rate hikes. He denied such a view, however, saying, "I don't think such things at all."

[Copyright The Jiji Press, Ltd.]