Nomura: Japan PM's economic blueprint may affect BOJ rate hike timing

BlockBeats news, July 2, Takahide Kiuchi, an economist at Nomura Research Institute, said that if Japanese Prime Minister Sanae Takaichi uses her "Basic Policy" economic blueprint (expected to be approved by the cabinet this month) to prevent further interest rate hikes, this could delay the timing of the Bank of Japan's next action.

He said: "Even if the government opposes it, the Bank of Japan will raise interest rates when it deems it necessary, but it may respect the government's wishes on the timing of rate hikes to some extent." He also added: "Government pressure against the Bank of Japan's rate hikes could further weaken the yen exchange rate and lead to lower bond prices, which will destabilize the country's economy and financial markets." (Jin Shi)