Finance Minister Katayama Satsuki (片山さつき) said that Prime Minister Takaichi Sanae (高市早苗) is not a reflationist and that she has the utmost respect for the Bank of Japan's independence. She also touched on the rising trend in long-term interest rates and the Bank of Japan's approach to policy management as part of market developments.
In an interview with Bloomberg, Finance Minister Katayama Satsuki (片山さつき) indicated that Prime Minister Takaichi Sanae (高市早苗) had asked her to explain to overseas investors that she is not a reflationist, saying she wanted to dispel any misunderstandings.
She went on to say that she has the “utmost respect” for the central bank's independence, adding that day-to-day policy management has been left to the Bank of Japan.
On market developments, she said the boom in rising interest rates would not continue forever, and explained that the trend toward higher interest rates worldwide and stronger funding demand from the private sector were likely behind it.
The same day, the long-term interest rate rose temporarily to 3.075%, and she also hinted at an intention to restrain the trend toward yen depreciation. Meanwhile, the Bank of Japan decided to raise interest rates at its monetary policy meeting on the 18th, while divisions among several Policy Board members also became a market focus.