Japan’s digital transformation minister denies that he called on the central bank to raise interest rates in a recent media interview.
Japanese Digital Transformation Minister Kono Taro said: “I am not asking the Bank of Japan to hike rates. I only mentioned a theory that when interest rates rise, the yen becomes stronger.”
Kono was referring on Friday to remarks he made in a Bloomberg TV interview on Wednesday.
He said he had been responding to comments by US Republican presidential nominee Donald Trump, who expressed concern about the dollar’s strength.
Kono’s remarks in the interview prompted some investors to sell the dollar and buy the yen.
Japan’s finance minister urged Kono to exercise caution. Suzuki Shunichi said he believes Kono made the comments without thinking about how careless remarks on currency moves can affect the foreign exchange market.
Suzuki added that the government needs to respect the Bank of Japan’s independence.