Bank of Japan Governor Kazuo Ueda: Sanae Takaichi did not make specific requests during the meeting

Bank of Japan Governor Kazuo Ueda stated that during his regular meeting with Prime Minister Sanae Takaichi to discuss economic issues and exchange general views, Takaichi did not make any specific requests.

After meeting with Takaichi at the Prime Minister’s official residence in Tokyo on Monday, Ueda said: “We discussed the overall economic and financial situation.”

Investors and economists are trying to determine whether, now that Takaichi’s political position is more secure, she will attempt to slow down the Bank of Japan’s rate hikes to protect economic growth, or push the Bank of Japan to take action to support the yen.

Hideo Kumano, Executive Economist at Dai-Ichi Life Research Institute and former Bank of Japan official, said: “Takaichi probably wanted to complete this meeting as soon as possible to avoid unnecessary market speculation if there was a long delay after the election before meeting. Ueda likely thinks the same.”

As the meeting only lasted 20 minutes, it is unlikely that both sides had an in-depth discussion on the policy path. Ueda declined to comment on whether Takaichi agreed with his view on the Bank of Japan’s policy stance.

Kumano said: “Takaichi now probably also understands that any attempt to interfere with the Bank of Japan would make financial markets nervous and put pressure on the yen. I don’t think Takaichi is frustrated with the Bank of Japan.”

Editor: Liu Mingliang