Japan does not need excessively loose monetary policy, economy minister says

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

TOKYO, Oct 2 : Japan is no longer experiencing deflation so does not need excessively loose monetary policy for the pursuit of a higher inflation rate, Economy Minister Minoru Kiuchi said on Friday.

Monetary policy decisions are the jurisdiction of the Bank of Japan, Kiuchi added, declining to comment on whether the government opposed further central bank interest rate hikes.

"Japan has emerged from an era where it needed the kind of reflationist policies taken under Abenomics," Kiuchi said at a regular news conference, adding that Prime Minister Sanae Takaichi's policies were different from the massive stimulus introduced by former premier Shinzo Abe in 2013.

"What I mean to say is that Japan is no longer in a deflationary period, and therefore does not need excessively loose policy that pursues inflation," Kiuchi said.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

Kiuchi made the remarks in response to reporters asking about a summary of opinions of the BOJ's September policy meeting, which showed a government representative called for caution over further interest rate hikes.

The remarks add to commentary from the government dismissing the viewpoint that it was pursuing reflationist policies to bolster demand through expansionary fiscal and monetary steps.

Finance Minister Satsuki Katayama said on Tuesday she made it clear to US Treasury Secretary Scott Bessent last week that the prime minister was not a reflationist.

Kiuchi is widely regarded as reflationist due to his past caution towards interest rate hikes and association with a group of lawmakers that called for expansionary spending.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here