The apparent friction between the Finance Ministry and the Bank of Japan over monetary policy has ended following the bank’s clear announcement Wednesday on monetary easing, Finance Minister Kiichi Miyazawa said Friday.

“There has been a lot of talk over the issue, but now I would say it is settled,” Miyazawa said, after a long pause, in response to a question at a regular news conference.

He said he also expects political pressure on the central bank to abate.

On Wednesday, the central bank’s policy board voted to leave its ultraeasy monetary policy unchanged but added tools to provide liquidity to the money market.

Policymakers of the ruling coalition had urged the BOJ to carry out measures to further ease monetary policy to prevent a rise in long-term interest rates, at a time when the issuance of massive government bonds is needed to finance an economic stimulus package.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.