Bank of Japan and government reaffirm coordination amid inflation and geopolitical risks but disclose no policy specifics.
Bank of Japan Governor Kazuo Ueda met with Prime Minister Sanae Takaichi to discuss economic and market developments, including the impact of the Middle East conflict. Both sides agreed to continue close coordination but avoided specifics on monetary policy, including the prospect of a June rate hike.
The BOJ had previously signaled a potential rate increase tied to spring wage negotiations, but rising geopolitical tensions and cost-push inflation have complicated the outlook. Takaichi emphasized the need for appropriate monetary policy while considering government measures to mitigate inflation’s impact.
No immediate market reaction was reported following the meeting, which was described as constructive but routine.