Japanese Finance Minister Suzuki Shunichi stressed the importance of coordination and cooperation between the government and the central bank to ensure that they do not hinder each other in achieving policy goals.
"it is important to maintain close policy coordination so as not to hinder the implementation of other policies and reduce the overall effectiveness of policy formulation," Suzuki Shunichi said at a news conference on Tuesday.
Suzuki Shunichi's comments come amid growing speculation that a weak yen could prompt the Bank of Japan to advance its next rate hike. Low interest rates in Japan are one of the main factors driving the weakening of the yen.
Kazuo Ueda, governor of the Bank of Japan, told parliament last week that he closely followed the movement of the yen and that "sudden unilateral movements have increased uncertainty and are bad for the Japanese economy."
Suzuki Shunichi said he was aware of Mr. Ueda's comments about the yen. "50eurofreenodepositcasinoWe will continue to communicate closely with the Bank of Japan to ensure that there is no friction between our common policy objectives, "Suzuki Shunichi said." He added that the government would closely monitor the exchange rate situation and take all possible measures if necessary.
Suzuki Shunichi declined to comment on the rise in JGBs yields this week and said yields were determined by the market.