Nomura Research Institute economist Takahide Kiuchi said Prime Minister
Takaichi’s economic “basic policy” blueprint, slated for cabinet approval this
month, could be used to block further tightening and thus delay the Bank of
Japan’s next rate move. He added the BOJ would still raise rates if warranted
despite government opposition, but may partly defer to the government on timing.
Kiuchi warned government pressure against BOJ hikes could further weaken the yen
and depress bond prices, undermining economic and financial stability.
