Japan’s government blueprint nudges BOJ to fuel demand, clouding rates path (opens original article in a new tab)

Japan's government draft economic blueprint pushes the Bank of Japan to maintain low rates and support private demand, creating potential policy tensions as the BOJ exits ultra-loose policy.

• Japan's government draft blueprint urges BOJ to support private demand with low rates, conflicting with potential BOJ rate hikes
• Draft explicitly calls for BOJ to align with government policy, citing legal requirements for coordination
• Government pledges steps to prevent deflation and boost growth, referencing Abenomics-style stimulus
• BOJ's 10-year bond yield fell to 2.625% as market reacts to government's monetary policy push
• Yen remains near four-decade low amid policy coordination tensions