Japan economic panel members underline BOJ independence

The four private-sector members 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 communicate regularly and have no major discrepancy in their understanding of economic and price conditions.

The members said Japan’s recent rise in long-term interest rates cannot be explained by fiscal policy alone, citing monetary policy, inflation expectations and overseas markets. They also said Japan’s primary balance has improved more than that of other major economies.

The government said it met with bond-market participants from about 20 securities firms, banks and asset managers to explain its policies and gather views on recent developments. The meetings followed Prime Minister Sanae Takaichi’s pledge to strengthen communication with markets to preserve confidence in Japan’s finances.