Japanese economic panel members emphasise BOJ's independence
TLT•Four private-sector members of Japan's key economic advisory panel called for close government coordination with the Bank of Japan while respecting its independence. They said multiple factors, including monetary policy, inflation expectations and overseas markets, have driven rising long-term yields.
1. Panel stresses central bank independence
The four private-sector members of Japan's Council on Economic and Fiscal Policy called for the government and the Bank of Japan to share assessments of economic and price developments and coordinate closely, while each fulfilling its role and respecting the BOJ's independence. Their recommendation differs from their May proposal urging the BOJ to pay close attention to smaller firms' funding conditions.
2. Yields have risen sharply
The members said the recent rise in long-term interest rates cannot be explained by fiscal policy alone. They cited monetary policy, inflation expectations and overseas markets as factors, and said Japan's primary balance had improved more than that of other major economies.
3. Government meets bond investors
In a separate document, the government said it had met with participants from about 20 securities firms, banks and asset managers to explain its policies and hear views on bond-market developments. The meetings followed Prime Minister Sanae Takaichi's pledge to improve communication with markets to preserve confidence in Japan's finances.
