Japan does not need excessively loose monetary policy, economy minister says
Kiuchi made the remarks in response to reporters
Japan's Economy Minister Minoru Kiuchi stated on Friday that the country is no longer experiencing deflation and does not require excessively loose monetary policy in pursuit of higher inflation rates. Kiuchi clarified that monetary policy decisions are the responsibility of the Bank of Japan and refused to comment on whether the government opposed further central bank interest rate hikes.
He emphasized that Japan has moved beyond the era of reflationist policies implemented under former Prime Minister Shinzo Abe's Abenomics. Kiuchi noted that Prime Minister Sanae Takaichi's approach differs from the extensive stimulus measures introduced during Abe's tenure. The Economy Minister's comments come in response to inquiries from reporters about the summary of opinions from the Bank of Japan's September policy meeting, which included a government representative advocating for caution regarding additional interest rate increases.
This stance aligns with earlier statements from the government, which have dismissed the notion that Japan is pursuing reflationist policies to stimulate demand through expansionary fiscal and monetary actions.
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