Japan Chamber of Commerce and Industry Chairman Kobayashi (小林) said that, as Japan's long-term interest rates rise, the BOJ's policy rate of 1% is low, and expressed the view that it is difficult for Japan to be the only country maintaining accommodative conditions. He said that, with the yen's weakening continuing, it would be difficult to correct the situation through foreign-exchange intervention alone and that narrowing the Japan-U.S. interest-rate differential is important.
Japan Chamber of Commerce and Industry Chairman Kobayashi (小林) said that, given the situation in which Japan's long-term interest rates reached 3% on the 1st, the BOJ's current policy rate of 1% is low. He expressed the view that it is difficult for Japan to be the only country maintaining accommodative conditions.
With the yen's weakening trend continuing, he said it would be difficult to correct the situation through one-off foreign-exchange intervention alone and that it is important to narrow the Japan-U.S. interest-rate differential through BOJ rate hikes.
Regarding reports that U.S. Treasury Secretary Scott Bessent expressed views on Japan's monetary and fiscal policies when he met with Finance Minister Katayama (片山) and BOJ Governor Ueda (植田), he said he understood that Japan-U.S. relations are deep enough for the two countries to engage further, while taking the comments as those of a counterpart who feels a sense of urgency.
The article was signed by the Economics Department of FNN Prime Online (Fuji Television network).