Hiromu Nonaka, the Secretary General of Japan’s ruling Liberal Democratic Party has made an announcement regarding future changes in the rate of interest, saying “It is up to the Bank of Japan to decide.”
The bank’s governor is apparently determined to raise interest rates. To offset the effect that a rate rise is likely to have, the Finance Minister, Kiichi Miyazawa has said that the government will be considering policy initiatives designed to aid small and medium sized businesses.
The political leadership of Japan has for some time safeguarded a zero interest rate policy, in spite of increasing pressure in recent months from the Bank of Japan.
Financial Times
