Bank of Japan Governor Ueda Kazuo has told the country ‘s new prime minister he is taking a cautious stance on the issue of further interest rate hikes.
The two met on Wednesday for the first time since Ishiba Shigeru took office as prime minister. They discussed Japan’s financial and economic situations.
After the meeting, Ueda said he told Ishiba that the central bank is currently pursuing an ultra-easy monetary policy to support the economy.
Ueda said, “The Bank of Japan will adjust its policy if the economy develops as it is expected to do, and there is a plenty of time to determine that. I told the prime minister that we will keep a close eye on the situation.”
Ueda said he and Ishiba agreed that the government and central bank will continue to work together closely.
He added that the prime minister did not make any specific proposals about the bank’s monetary policy.
Ishiba told reporters that the government is not in a position to instruct the central bank, but that he personally thinks Japan is not in an environment for an additional rate hike.