TOKYO, July 14 (Reuters) – Japan’s government will insert a footnote in its economic blueprint referring to a clause in law stipulating the need to protect the central bank’s independence in setting monetary policy, TV Tokyo reported on Tuesday.
In the final version of the blueprint, the government will call on the Bank of Japan to guide policy appropriately “to achieve stable price rises,” making clear the government has no intention to interfere in monetary policy, TV Tokyo said.
An earlier draft of the government’s economic blueprint triggered a sell-off in the yen and bonds by giving markets the impression dovish Prime Minister Sanae Takaichi’s administration would pressure the central bank to delay rate hikes. A minister in charge of the blueprint was later forced to admit the government will tweak language to soothe market jitters.
The final version of the blueprint, the first to be compiled by Takaichi’s administration, is likely to be approved by cabinet next week.
(Reporting by Leika Kihara; Editing by Raju Gopalakrishnan)
