After Ueda’s Hawkish Signal, Japanese Government Clarifies Non-Intervention Stance

　　A day after Bank of Japan Governor Kazuo Ueda gave the clearest signal yet that interest rates could be raised this month, Japan’s finance and economy ministers voiced no opposition.

　　Finance Minister Kiyama Tsuki stated at a press conference following the cabinet meeting on Tuesday, "The specific approach to monetary policy should generally be left to the Bank of Japan, and I believe that is indeed the case."

　　She added that the government expects the central bank to "appropriately implement monetary policy and operations" to achieve its 2% inflation target. Minister for Economic and Fiscal Policy Yūki Kinochi repeated these remarks verbatim, indicating that the response was carefully orchestrated by the cabinet to send a unified signal of support.

　　Kiyama Tsuki and Yūki Kinochi were the two cabinet members who met with Ueda last month to confirm close coordination. Their comments will solidify market speculation about the possibility of the Bank of Japan announcing an increase in borrowing costs on December 19.