Japan
Statement summary
Takaichi denies a link between the draft economic blueprint and bond-market rout
Takaichi says the draft blueprint did not cause the bond-market rout. Takaichi says interest and exchange rates reflect several factors.
TOKYO, July 15 (Reuters) - Japanese Prime Minister Sanae Takaichi on Wednesday said she saw no link between her government’s draft economic blueprint and a recent market rout that has driven Japanese government bond (JGB) yields to multi-decade highs. "I do not believe that a single draft government document, which has not even been approved by the cabinet yet, is the cause of the market shock," Takaichi told parliament. Concerns about political interference in monetary policy have grown since the government in its draft blueprint said it was "very important for monetary policy to be guided appropriately to achieve a stronger economy". The draft was followed by a selloff in JGBs. Takaichi also said interest rates, as well as foreign exchange rates, are "determined by a variety of factors. Looking at today’s market moves, for example, there are influences from U.S. interest rates and...