The Japanese government will emphasize respect for the independence of the Bank of Japan in its economic blueprint.
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```htmlGolden Ten Data reported on July 14 that, according to Japan's TV Tokyo on Tuesday, the Japanese government will add a footnote to the new draft of its basic economic and fiscal policy guidelines, citing legal provisions that guarantee the Bank of Japan’s autonomy in setting monetary policy. The report said that in the final version, the Japanese government will call on the Bank of Japan to "aim for stable price increases and guide monetary policy appropriately," clearly indicating the government has no intention of interfering with monetary policy. The previously released draft triggered a sell-off of the yen and Japanese government bonds, as the market believed the dovish government led by Prime Minister Sanae Takaichi might pressure the Bank of Japan to delay interest rate hikes. Afterwards, cabinet members responsible for drafting the policy document admitted that the government would revise the language to alleviate market concerns. This set of basic economic and fiscal policy guidelines is the first to be drawn up since Sanae Takaichi’s government took office and is expected to be submitted to the cabinet meeting for approval next week.```
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