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Japan's FM Katayama: Stresses on government-BoJ cooperation to achieve price stability

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Japan's FM Katayama: Stresses on government-BoJ cooperation to achieve price stability

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New update 2025.11.19 19:40
Japan's FM Katayama: Stresses on government-BoJ cooperation to achieve price stability

update 2025.11.19 19:40

Japan's Finance Minister (FM) Satsuki said after a meeting with government ministers and Bank of Japan (BoJ) Governor Kazuo Ueda that the administration and the central bank will work closely towards sustainably achieving price increase.

Additional comments

Held meeting from perspective of maintaining close Government and BoJ coordination.

Held meeting on my request to confirm cooperation under the new administration.

Reaffirmed closely monitoring market.

Reconfirmed technical tweak to BoJ-Government joint statement, no change to substance.

No specific discussion on FX.

BoJ Ueda explained current policy stance.

Reaffirmed need for Government-BoJ to work towards sustainably achieving price increase backed by wage gains and sustainable growth.

Will closely monitor market developments with high sense of urgency.

No discussion on size of stimulus package.

Can't comment on size of issuance of new JGBs for stimulus package.

We're focusing on reducing debt to GDP ratio.

BoJ Ueda's remarks were the same as those made in briefing after policy meeting, said they are adjusting degree of monetary policy support.

Have no objection to what BoJ Ueda was saying.

Japanese Yen FAQs

The Japanese Yen (JPY) is one of the world's most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan's policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.

One of the Bank of Japan's mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.

Over the last decade, the BoJ's stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.

The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen's value against other currencies seen as more risky to invest in.

 

 


Date

Created

 : 2025.11.19

Update

Last updated

 : 2025.11.19

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