Japan government opposes premature rate hike by Bank of Japan

Japanese Economy Minister Ryomasa Akasawa said Prime Minister Shigeru Ishiba is not necessarily in favor of a Bank of Japan rate hike, underscoring the government’s opposition to raising borrowing costs too soon, according to Jin10 Data.

Akazawa’s comments suggest the government is sending a signal to Bank of Japan Governor Kazuo Ueda that it opposes raising borrowing costs again too soon.

Akazawa’s close relationship with Ishiba may have reinforced the market’s view that there is little chance of a rate hike when the Bank of Japan holds its policy board meeting at the end of this month.