At the September Bank of Japan meeting, Monetary Policy Board member Sato Ayano (佐藤綾野), who had opposed rate hikes, was said to have made remarks aligning with the Bank of Japan’s policy. Amid debate over the combination of proactive fiscal policy and monetary easing promoted by the Takaichi administration, speculation is growing over the toning down of Bank of Japan appointments described as sending in an “assassin.”
At the September monetary policy meeting, Monetary Policy Board member Sato Ayano (佐藤綾野) was said to have ultimately aligned with the policy of continuing rate hikes, despite taking a position against rate hikes, causing widespread repercussions. The account was attributed to an investment strategist.
There is a view that Sato Ayano (佐藤綾野) and Professor Emeritus Asada Toichiro (浅田統一郎) were sent to the Bank of Japan as Monetary Policy Board members to promote the Takaichi administration’s responsible proactive fiscal policy. They were initially expected to play a role as reflationists in advocating fiscal stimulus and monetary easing. This is said to have led to a review of the policy stance.
The initial budget requests for the next fiscal year are expected to reach a record ¥143 trillion, and a plan has been presented to invest a total of ¥370 trillion in 17 fields, including AI. However, questions have arisen about the direction of fiscal management amid criticism that the sources of revenue remain unclear.
Regarding this fiscal management, markets in Japan and overseas have observed rising long-term Japanese government bond yields. With rising US long-term yields moving in tandem, skepticism toward economic stimulus measures is increasing, while developments under the Trump administration are contributing to heightened market tensions.