Japan's Economy Minister Minoru Kiuchi stated that Japan no longer needs excessively loose monetary policy since it has emerged from deflation, distinguishing current policies under Prime Minister Sanae Takaichi from former premier Shinzo Abe's Abenomics stimulus. The remarks follow government pushback against characterizations of reflationist policies and a BOJ September meeting summary showing a government representative cautioned against further interest rate hikes.
Bank of Japan policymakers debated accelerating interest rate hikes in September, with some advocating faster tightening as inflation approaches the 2% target. However, a government representative urged caution, citing concerns about cumulative economic effects, which weakened yen expectations for an October rate hike despite the BOJ raising rates to a 31-year high of 1.25%.