Japan draft blueprint urges BOJ to support private demand

Macro
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Japan's government will call for monetary policy that bolsters private demand, according to a draft of its long-term economic blueprint seen by Reuters. The draft urges the Bank of Japan to align its decisions with Prime Minister Sanae Takaichi's push to reflate growth, citing legal provisions requiring policy coordination. It states that appropriate monetary policy supporting private demand through stable price rises is extremely important and that the government will not hesitate to take nimble and sufficient steps to prevent a return to deflation. The blueprint, to be finalised in July, is the first compiled under Takaichi, an advocate of loose fiscal and monetary policy who has previously voiced reservations about the BOJ's stimulus exit.

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