Japan economic panel members underline BOJ independence
TLT•Private-sector members of Japan’s economic advisory panel called for close government-BOJ coordination while respecting the central bank’s independence. They said fiscal policy alone could not explain the recent rise in long-term interest rates.
1. Panel calls for coordination
Four private-sector members of Japan’s Council on Economic and Fiscal Policy said the government and the Bank of Japan should share assessments of economic and price developments and coordinate closely, with each fulfilling its role while respecting the BOJ’s independence. Economy Minister Minoru Kiuchi said the two sides regularly exchange views and have no major discrepancy in their understanding of economic and price conditions.
2. Rates and fiscal policy
The members said the recent rise in long-term interest rates could not be explained by fiscal policy alone, citing monetary policy, inflation expectations and overseas markets. The government separately said it had met bond-market participants from about 20 securities firms, banks and asset managers to explain its policies and gather views.
