Japan’s newly appointed economy minister, Ryosei Akazawa, said on Wednesday that Prime Minister Shigeru Ishiba expects the Bank of Japan to make careful economic assessments when raising interest rates again.
“Our top priority is to ensure that Japan completely exit from deflation,” said Akazawa in his first news conference as the economy minister. “It will take some time to achieve the full exit.”
“Ishiba’s (previous) comments on the need for monetary policy normalization have conditions attached,” said Akazawa, a close ally of Ishiba.
The government wants the BOJ to share its view that the exit from deflation is Japan’s top priority and to make careful decisions on whether to raise interest rates further, he said.
The minister also stressed the administration would closely communicate and coordinate with the BOJ to decisively beat deflation.
The BOJ raised rates in July, but kept policy steady at the September meeting, saying it could afford to spend time eyeing the fallout from global economic uncertainties.
