Bank of Japan and Japanese government agree to maintain policy coordination amid inflation concerns and geopolitical risks.
Bank of Japan Governor Kazuo Ueda met with Prime Minister Sanae Takaichi, emphasizing continued close coordination between the central bank and government. Ueda described the meeting as beneficial but did not discuss specifics on monetary policy timing, including market speculation about a June rate hike.
The discussion covered economic and price developments, as well as market impacts from the Middle East conflict. Takaichi urged the BoJ to consider government measures aimed at mitigating inflation’s effects on households and businesses.
USD/JPY showed no immediate reaction, trading 0.1% higher at 159.10 following Ueda’s remarks.