The government is expected to revise the draft of the Basic Policy on Economic and Fiscal Management and Reform, known as the Basic Policy, which it plans to approve at a Cabinet meeting as early as the 21st. The draft appears to discourage the Bank of Japan from raising interest rates.
The government is expected to revise the draft of the Basic Policy, which it plans to approve at a Cabinet meeting as early as the 21st. The draft may be read as discouraging the Bank of Japan from raising interest rates.
The focus of the revisions will be a review of the wording discouraging a BOJ rate hike. The extent to which changes will be incorporated into the overall policy will become clear as the details are finalized.
The move is seen as being related to such issues as the response to the more flexible operation of YCC and consecutive fixed-rate purchase operations, maintaining the BOJ's monetary easing measures, and the relationship between the policy of reducing policy shareholdings and shareholder returns.