TOKYO, (PNA/Kyodo) — Many Bank of Japan policymakers said maintaining credibility of fiscal management was important to ensure the stability of interest rates and called on the government to promote measures to achieve fiscal consolidation, the minutes of their policy meeting last month showed Tuesday.
During the August 7-8 meeting, many members expressed the view that long-term interest rates in Japan had been stable, noting that the central bank’s massive government bond purchases were “significantly restraining upward pressure on long-term interest rates” that stemmed from a rise in overseas interest rates and improving business sentiment.
But one member said that “potential instability continued to exist in the bond market” and that attention should be paid to the effects of developments in domestic prices and U.S. interest rates, the minutes said.