Japanese Media: Sanae Takaichi Conveys Concerns Over Further Interest Rate Hikes to Kazuo Ueda

Odaily According to a report by Mainichi Shimbun on Tuesday citing sources, Japanese Prime Minister Sanae Takaichi conveyed concerns over further interest rate hikes during a meeting with Bank of Japan Governor Kazuo Ueda last week. If true, Takaichi's recent refusal to raise interest rates again could complicate the Bank of Japan's plans, as coordination with the newly appointed government would become more challenging. Following this report, the Japanese yen weakened against both the US dollar and the euro. Kazuo Ueda stated that last Monday's meeting primarily involved a general exchange on the economic and financial situation, adding that the Prime Minister did not make any specific monetary policy requests. Sanae Takaichi herself avoided discussing the specific details of their meeting, only stating that she hopes the central bank will work closely with the government to achieve its 2% inflation target accompanied by wage growth. The meeting took place amid market speculation that rising living costs, driven by factors such as a weak yen, might prompt the Bank of Japan to raise interest rates in March or April. (Jin10)