BoJ Governor Kazuo Ueda met Prime Minister Sanae Takaichi for the first time since the LDP’s decisive election win, in talks closely watched by markets for clues on policy direction. The timing is notable, with expectations growing that inflation pressures tied to Yen weakness could accelerate interest rate normalization.
Following the meeting, Ueda described the talks as a “general exchange of views on economic and financial developments,” adding that the prime minister made no specific monetary policy requests. Pressed on whether he secured political backing for the BoJ’s rate hikes, Ueda declined to provide details, saying there was nothing he could disclose about the substance of the discussion.
Speculation has intensified in recent weeks that rising cost-of-living pressures may prompt the BoJ to consider raising rates as early as March or April. While the meeting yielded no explicit signals, the absence of public disagreement may be interpreted as tacit support for the central bank’s cautious path toward policy tightening.
