Japanese Prime Minister Voices Support for Bank of Japan's Recent Rate Hike

August 13th. Japanese Prime Minister Naoto Takaichi expressed support for the Bank of Japan's recent interest rate hike, with the next steps likely to be taken in September or October.

The Bank of Japan is concerned that a weak yen could push up prices and the government hopes to strengthen the recent joint US-Japan intervention in the foreign exchange market, aligning both parties on the need for a recent rate hike. The Prime Minister's Office of Japan believes that specific monetary policy measures, including the rate hike, should be determined by the Bank of Japan, but the central bank should work closely with the government to achieve the 2% inflation target in a "stable manner." (Bloomberg)