Ministers close to Takaichi Sanae (高市早苗), president of the Liberal Democratic Party, are said to have suggested applying pressure to restrain the Bank of Japan from raising interest rates, and reports indicate that US pressure led the administration to adjust its approach to the Bank of Japan.
Ahead of the Bank of Japan's Monetary Policy Meeting, Kiuchi Minoru (城内実), Minister of State for Economic and Fiscal Policy, is said to have told those around him that a request to postpone the vote should be considered as an option for stopping the Bank of Japan from raising interest rates. This has been cited as part of the stance taken by ministers close to the administration to pressure the Bank of Japan since the Takaichi administration took office.
The right to request postponement of a vote is provided for under the Bank of Japan Act, but its actual use would be unusual. There was a past instance in which postponement was requested at a meeting in 2000, but the request was ultimately rejected. It remains unclear whether the latest remarks will lead to use of the mechanism.
Even after Kiuchi Minoru's (城内実) remarks, no specific discussions progressed within the Cabinet Office, and the Bank of Japan raised its policy rate by 0.1 percentage point at its June meeting. The remarks are said to have been intended to convey the Takaichi administration's position to the Bank of Japan, but the decision itself did not develop into a definitive act of government intervention.
The minutes of the June meeting state that the Takaichi Cabinet's positions, including investment in crisis management, had been conveyed to the Bank of Japan. The Bank of Japan's judgment and the continued nature of remarks by government officials are expected to be the focus regarding future developments.