TOKYO, Oct 9 (Reuters) – Japanese Prime Minister Sanae Takaichi said on Friday the government will continue to scrutinise exchange-rate and price developments carefully, and respond appropriately.
• Takaichi made the remark in parliament in response to a question from an opposition lawmaker on Japan’s economic policy and the potential fallout from a weak yen
• She also said the administration will guide fiscal policy looking at various factors that affect the economy, including interest rates and yen moves
• The remarks follow those by Takaichi in parliament on Thursday that Japan’s economy no longer needed reflationary policies because it was not experiencing deflation
• Takaichi also told parliament on Thursday the government is fully respecting the Bank of Japan’s independence in setting monetary policy, suggesting it would not push back against further interest-rate hikes
• Once an advocate of loose fiscal and monetary policy, Takaichi is under pressure from markets to reverse course with investors’ concern over Japan’s worsening finances and rising inflation pushing down the yen and bond prices
(Reporting by Leika KiharaEditing by Shri Navaratnam)
Comments