It is reported that the Japanese government supports the Bank of Japan in accelerating the pace of interest rate hikes.

According to informed sources, the government led by Prime Minister Kishida Fumio supports the recent interest rate hike by the Bank of Japan, with the next rate increase likely to occur in September or October. The sources added that the central bank is concerned that a weakening yen will drive up prices, while the government hopes to strengthen the effects of recent U.S.-Japan currency intervention. Both sides have reached a consensus on the necessity of a short-term interest rate hike. The Bank of Japan enjoys statutory independence in monetary policy but also needs to communicate closely with the government regarding economic policy objectives. The Kishida cabinet cannot force the Bank of Japan to set specific interest rates, but it can signal its intentions to influence the central bank's decisions. The Prime Minister's Office stated in an email declaration, "We believe that specific monetary policy measures, including interest rate hikes, should be determined by the Bank of Japan." The statement also mentioned that the central bank should closely collaborate with the government to achieve the 2% inflation target in a "stable manner." The Bank of Japan declined to comment on this.