Japan government expects BOJ to coordinate policy steps with it, spokesperson says

BY Reuters | ECONOMIC | 10:30 PM EDT

TOKYO, June 4 (Reuters) - Japan's government expects the Bank of Japan to conduct appropriate monetary policy toward a sustainable 2% inflation target that is driven by wage growth in close coordination with the government, Chief Cabinet Secretary Minoru Kihara said on Thursday.

Asked about the BOJ governor's Wednesday remarks, Kihara declined to comment on specific views, only saying the government and the BOJ have had and will continue having "sufficient communication" in occasions such as the meeting between the governor and Prime Minister Sanae Takaichi last month.

"Specific methods of monetary policy should be left to the BOJ," Kihara told a regular briefing, repeating the government's usual remarks on the central bank. (Reporting by Kantaro Komiya; Editing by Muralikumar Anantharaman)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article