Takaichi Reaffirms BOJ Coordination Amid Yen Depreciation Pressure

Japanese Prime Minister Sanae Takaichi reaffirmed the government's commitment to coordinating with the Bank of Japan (BOJ) during a House of Representatives Budget Committee meeting on July 27. She emphasized that securing market confidence is a top priority in future budget formulation, while respecting the independence of monetary policy.

Takaichi stated that raising the economy's potential growth rate would lead to increased confidence in the yen and stressed the importance of enhancing fiscal sustainability by specifying the full-year government bond issuance amount. This move aims to ensure exchange rate stability and international confidence in the yen.

During the meeting, Takeshi Shina, a lawmaker from the Constitutional Democratic Party, questioned whether the Takaichi administration intends to respect the autonomy and independence of the BOJ. Prime Minister Takaichi responded by citing Article 3 of the Bank of Japan Act, which stipulates that monetary control shall be carried out by the BOJ.