Takaichi Govt to Affirm BOJ Independence in Key Policy Guidelines

Tokyo, July 14 (Jiji Press)--The Japanese government's upcoming annual economic and fiscal policy guidelines will affirm its respect for the independence of the Bank of Japan, it was learned Tuesday.

The government seems eager to address market concerns that the administration of Prime Minister Sanae Takaichi favors monetary easing and discourages the central bank from raising interest rates.

The guidelines will include in a footnote referencing Article 3 of the Bank of Japan Law, which stipulates that the bank's autonomy regarding monetary policy must be respected.

The guidelines are expected to be approved at a cabinet meeting as early as July 21.

In the footnote, the government plans to state that determining what monetary policy method to use will be left to the BOJ based on Article 3 of the Law.

[Copyright The Jiji Press, Ltd.]