It was reported that Prime Minister Takaichi (高市) had asked the governor of the Bank of Japan to increase its purchases of Japanese government bonds, with fiscal concerns cited as the background. Meanwhile, the Bank of Japan is considering a new scheme to avoid fiscal dominance, a direction reportedly suggested in the minutes of its June meeting.
According to a report carried by Jiji Press on 5 August, Prime Minister Takaichi (高市) was said to have asked the governor of the Bank of Japan to increase, rather than reduce, its purchases of Japanese government bonds, reportedly seeking to contain interest rates amid expansionary fiscal policy.
The background was reportedly a period in which concerns over fiscal risks intensified following the draft Basic Policy on Economic and Fiscal Management and Reform released at the end of June, while 10-year yields rose. Against this backdrop, the author had pointed out that the Bank of Japan's response could be viewed as fiscal dominance.
The article reports that the Bank of Japan is considering a new scheme to avoid fiscal dominance in relation to its purchases of Japanese government bonds, and explains that the minutes of its June monetary policy meeting suggest this direction.
The article explains that information to the same effect has been repeated in multiple reports and is presented as an excerpt and edited version of an article by Atago Nobuyasu (愛宕伸康).