When Prime Minister Takaichi Sanae (高市 早苗) met with Bank of Japan Governor Ueda Kazuo (植田 和男), she reportedly asked the central bank to increase its purchases of government bonds as necessary to maintain long-term interest-rate stability. The relationship between the Bank of Japan's purchase decisions and market stability will be a focal point.
Prime Minister Takaichi Sanae (高市 早苗) and Bank of Japan Governor Ueda Kazuo (植田 和男) met at the Prime Minister's Office on 22 May 2026. According to media reports, the Prime Minister reportedly asked the Bank of Japan to purchase government bonds as necessary to curb the rise in long-term interest rates. The request was reportedly made for an appropriate response to support market stability, given that the Bank of Japan is currently reducing the amount of its government bond purchases.
The Bank of Japan has indicated a policy of purchasing government bonds when necessary in principle, but some observers view this as an emergency response rather than part of an active economic policy. The article also discusses the background to the debate over the Bank of Japan's independence.
In response to the reports, concerns over the Bank of Japan's monetary policy management and fiscal financing could resurface. Some market participants believe that changes in the amount of government bond purchases could affect long-term interest rates and the yen exchange rate, while attention is also focused on the consistency of policy management.
As additional information, the Bank of Japan conducted an interim assessment at its June Monetary Policy Meeting and decided to shift to monthly purchases of approximately ¥2 trillion from April 2027. It has been reported that Prime Minister Takaichi Sanae (高市 早苗) and Governor Ueda Kazuo (植田 和男) expressed their views on continuing to reduce purchases during their meeting in this period.