Reports on the first year of the Takaichi administration state that the government attached conditions to the policy of raising interest rates while the Bank of Japan was increasing its purchases of government bonds. The actions of the Bank of Japan governor and the prime minister are expected to affect monetary policy going forward.
The article on the first year of the Takaichi administration summarizes the Bank of Japan's increasing purchases of government bonds and the government's conditions regarding its policy of raising interest rates.
The Bank of Japan's purchase policy is evolving amid tensions over the conduct of monetary policy. While the Bank of Japan has not rejected the policy of changing the policy rate from 0.75% to around 1.0%, the government has attached conditions to it.
The Bank of Japan governor visited the prime minister at the Prime Minister's Office on the evening of 22 May and reportedly sought confirmation from the prime minister ahead of the June policy meeting. Attention is therefore focused on the Bank of Japan's response going forward.