Japan's Finance Minister Kazuki Katayama: The relationship between the government and the central bank is “smooth”, the economic blueprint is not intended to exert pressure, and there is no cap on government bond issuance.

(1) Japanese Finance Minister Katsuyuki Katayama stated in an exclusive interview that the relationship between the government and the Bank of Japan is "normal and smooth." She emphasized that the day-to-day conduct of monetary policy falls under the central bank’s responsibility and denied that the government was attempting to interfere in the interest rate hike process. Regarding the mention in the economic blueprint requiring the central bank to coordinate economic policies, she explained that the draft was never intended to pressure the central bank, but that the drafters lacked experience in discussing such legislation, which could lead to misunderstanding. (2) Katayama said the government has no intention of setting an upper limit on the annual government bond issuance scale, but will ensure close communication with the bond market during next year's budget compilation process and keep the issuance scale within a range deemed reasonable by investors, rather than waiting until the final budget is completed in December to announce a decision. (3) Regarding the weak yen, she said it brings both advantages and disadvantages to the economy, and the government's stance in responding to exchange rate fluctuations remains unchanged; when asked about possible joint intervention by Japan and the US, she declined to comment, but believes Washington holds a similar position.