Japanese media: Sanae Takaichi conveyed her concerns about further interest rate hikes to Kazuo Ueda

ChainCatcher News reports that, according to sources cited by The Daily News on Tuesday, Japanese Prime Minister Sanae Takaichi conveyed concerns about further interest rate hikes during a meeting with Bank of Japan Governor Kazuo Ueda last week. If the report is accurate, Takaichi’s recent refusal to raise rates again could complicate the Bank of Japan’s plans, as coordination with the newly appointed government may become more difficult.

Following this report, the yen weakened against the US dollar and euro. Ueda stated that last Monday’s meeting mainly involved general discussions on economic and financial conditions, and that the Prime Minister did not make any specific monetary policy requests. Takaichi herself declined to comment on the details of their meeting, only expressing her hope that the central bank would work closely with the government to achieve its 2% inflation target along with wage growth.

At the time of this meeting, market participants speculate that rising living costs caused by a weak yen could prompt the Bank of Japan to consider raising interest rates in March or April.