Nomura: The Japanese Prime Minister's economic blueprint may influence the timing of Bank of Japan interest rate hikes

Golden Ten Data reported on July 2 that Nomura Research Institute economist Takahide Kiuchi stated that if Japanese Prime Minister Sanae Takaichi uses her "Basic Policy" economic blueprint (expected to receive cabinet approval this month) to prevent further interest rate hikes, this could delay the Bank of Japan's next move. He said, "Even if the government objects, the Bank of Japan will raise interest rates when it deems necessary, but it may to some extent respect the government's wishes on the timing of rate hikes." He also added, "Government pressure against Bank of Japan rate hikes could further weaken the yen exchange rate and lead to lower bond prices, which would undermine the stability of the country's economy and financial markets."