In the wake of the spike in Yen, prompted by BoJ Governor Kazuo Ueda’s remarks, Finance Minister Shunichi Suzuki made clarifying comments today. Yen’s climb was chiefly attributed to Ueda’s interview with Yomiuri Shimbun, where he hinted at the possibility of exiting negative rates policy in the coming year.
At a regular press conference, Suzuki underlined the autonomy of BOJ, stating that the “specific monetary policy conduct is up to the BOJ to decide.”
However, the minister did not hold back from expressing the government’s expectations . Suzuki conveyed his aspirations for BOJ, emphasizing its collaboration with the government. He said, “I expect the BOJ to continue to liaise with the government closely and conduct monetary policy appropriately.”
The guiding principle for this collaboration, as Suzuki suggests, should be a comprehensive evaluation of the economy, considering factors like pricing and prevailing financial conditions. The ultimate aim is to “achieve its price stability target in a stable and sustainable way.”
The remarks by the Finance Minister, while emphasizing BOJ’s autonomy, also subtly convey the weight of responsibility the central bank carries in managing the nation’s economic health, especially in unpredictable financial climates.