The Bank of Japan is not expected to make sudden changes to its monetary policy that could disrupt ongoing budget discussions, according to a senior member of the Democratic Party for the People.
Motohisa Furukawa, the party's tax chief, emphasized the need for the central bank to avoid hastily raising interest rates due to concerns about a potential return to deflation.
However, it is also expected that the bank will refrain from taking actions that could interfere with the budget formulation process.
These comments reflect a cautious approach from the BOJ, which aligns with the government's desire for stability in fiscal discussions during a sensitive economic period.