Japan's Economic Panel Urges Close Coordination with BOJ

The private-sector members of Japan's key economic advisory panel have reiterated the importance of close coordination between the government and the Bank of Japan (BOJ) on monetary policy. In a statement, they emphasized respect for the central bank's independence in policymaking while calling for shared assessments and coordination.

The recommendations mark a shift from May when they urged caution on further interest rate hikes. Economy Minister Minoru Kiuchi said that the government and BOJ maintain close communication and regularly exchange views at various levels.

The Council on Economic and Fiscal Policy (CEFP) oversees Japan's fiscal blueprint and long-term economic policies. The private-sector members' proposals form a basis for discussions at the panel.