TOKYO, Dec 5 (Reuters) – Japanese Finance Minister Satsuki Katayama said on Friday that communications with Bank of Japan Governor Kazuo Ueda have been positive in many ways since she took the post in October.
“Since taking on this role in October, I believe communications between Governor Ueda and myself have been very good in many respects,” Katayama said in a regular press conference, when asked about the central bank’s monetary policy.
“As for the specifics of monetary policy operations, those are entrusted to the Bank of Japan,” she added.
The BOJ is likely to raise interest rates this month with the government expected to tolerate such a decision, Reuters reported on Thursday.
Following a recent sell-off in long-dated government bonds, Katayama said the government will continue to closely monitor market developments, ensure the sustainability of Japan’s state finances and maintain market confidence through close dialogue with market participants.
The benchmark 10-year yield rose to 1.94% on Friday, its highest level since July 2007, reflecting market concerns about Prime Minister Sanae Takaichi’s massive economic stimulus to be funded largely by new borrowing.
Katayama stressed that the supplementary budget to fund stimulus was compiled with fiscal sustainability in mind, and the government “is naturally considering sustainability in the formulation of the initial budget for fiscal 2026 as well.”
(Reporting by Makiko Yamazaki; Editing by Christopher Cushing and Sonali Paul)
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