Economy minister Kiuchi signals caution on further BOJ tightening, citing risks to growth and ongoing moderate recovery.
Japan’s economy minister acknowledged that rising interest rates could impact the economy through multiple channels, as the Bank of Japan nears a policy decision. The remarks, while deferring to the BOJ’s independence, highlight government sensitivity to aggressive tightening moves.
Kiuchi noted capital expenditure continues to grow and the economy is recovering moderately. He emphasized long-term rates are market-driven but stressed coordination with the BOJ under their joint deflation-fighting statement. The comments suggest political caution without direct interference.
Traders are interpreting the statement as a signal that the government is monitoring BOJ actions closely, though the central bank’s next move remains the key driver for yen and JGB markets.