Japan's new prime minister, Shigeru Ishiba, said on Tuesday he hoped the central bank would maintain loose monetary policy "as a trend" as the government seeks to get the country fully out of the deflation that has weighed on it for most of the last three decades.
Ishiba said his administration will carry over the economic policy of former Prime Minister Fumio Kishida, and "ensure Japan fully emerges from deflation."
While saying that specific measures on monetary policy were up to the Bank of Japan to decide, Ishiba said he expects the central bank to coordinate with the government on policy.
"I hope loose monetary policy will be maintained as a trend. I won't comment specifically on interest rates, but watching the BOJ's decision carefully," Ishiba told a news conference after being confirmed earlier on Tuesday as premier by parliament.
Ishiba said his administration's economic policies will put highest priority in "pulling Japan out of deflation," including by boosting real wages and corporate capital expenditure.
Ishiba said he will tell his cabinet to compile a fresh package of measures to cushion the blow to households from rising living costs, such as by offering payouts to low-income households.
