(Central News Agency, Tokyo, 14th, Comprehensive Foreign Telegram) Japanese cabinet member Ryosei Akazawa recently stated on a program that a Bank of Japan interest rate hike is an 'option' for tackling inflation. Today, Japan's Finance Minister Satsuki Katayama stated, 'The Prime Minister and I have already expressed to him our hope that he refrains from related remarks.'

According to the Asahi Shimbun, Akazawa, who currently serves as the Minister of Economy, Trade and Industry, was explaining the Japanese government's measures against price hikes caused by soaring crude oil prices due to the situation in Iran on a Japan Broadcasting Corporation (NHK) program on the 12th of this month.

When asked about the Bank of Japan (BOJ) raising interest rates to simultaneously curb yen depreciation and inflation, he said, 'The real interest rate is in a considerably low state. While observing the impact on the economy, considering a move in the direction just described (an interest rate hike) is one of the options.'

The BOJ is set to hold its monetary policy meeting on the 27th and 28th of this month, and the market will be watching to see if the BOJ will raise interest rates. In principle, the BOJ, as the central bank, decides monetary policy independently of the Japanese government, although it does coordinate with government ministries such as the Ministry of Finance and the Cabinet Office. However, matters related to the BOJ do not fall under the jurisdiction of the Minister of Economy, Trade and Industry.

Katayama stated at a press conference after the cabinet meeting today that yesterday, during the government's Council on Economic and Fiscal Policy meeting, both Prime Minister Sanae Takaichi and she herself had reminded Akazawa to be mindful of his remarks.

Katayama pointed out, 'The Minister of Economy, Trade and Industry is not the competent authority, and legally, specific measures should be decided by the BOJ,' once again emphasizing the BOJ's independence. (Compiled by: Yang Wei-ching) 1150414

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  • Source: CNA (Central News Agency)
  • Category: regulation