The government will call for monetary policy that bolsters private demand, a draft of its long-term economic blueprint showed, signalling a preference for keeping borrowing costs low and setting up potential policy tensions with the central bank.
The draft urges the Bank of Japan to align its decisions with Prime Minister Sanae ?Takaichi¡¯s drive to reflate growth, citing legal provisions requiring the central bank to coordinate policy with the government.
The unusually explicit language underscores the Takaichi administration¡¯s ?growing unease ?with further rate hikes as the BOJ exits years of ultra-loose policy, and signals a stronger push for coordination ?that could shape the timing and pace of tightening in the months ahead.
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