Japan PM's Economic Blueprint May Delay BOJ Rate Hike Timeline, Says Nomura Economist

According to Takahide Kiuchi, economist at Nomura Research Institute, on July 2, Japan's central bank may delay its next rate hike if Prime Minister Sanae Takaichi uses her "Basic Policy" economic blueprint—expected to gain cabinet approval this month—to resist further increases. Kiuchi noted that while the BOJ will raise rates when deemed necessary regardless of government opposition, it may "respect the government's preferences to some extent" on timing. He warned that government pressure against rate hikes could further weaken the yen and lower bond prices, potentially destabilizing Japan's economy and financial markets.
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