[Column] Governor Ueda, it's time to dodge interference and stay cautious - Reedy & Moss

2024/7/30 14:06 JST (some excerpts)

In Japan, where inflation has been suppressed quite a bit, two members of parliament aiming for the next prime minister are insisting on raising interest rates. Digital Minister Taro Kono and Secretary General Motegi Toshimitsu of the Liberal Democratic Party each asked the Bank of Japan for financial tightening on the grounds of side effects of the depreciation of the yen that had gone too far.
　　In contrast, in the US, former President Trump has been demanding interest rate cuts for a long time. Generally, politicians seek interest rate cuts. This is because they don't want to take responsibility when the economy falls due to interest rate hikes. What is surprising is that in Japan, calls for interest rate increases have been raised from within the ruling party. Mr. Trump made such statements as presidential candidates for the opposition party, but both Kono and Mogi are complete administration insiders.