Japans Takaichi calls on BOJ to pursue inflation driven by wage gains

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Japans new Prime Minister Sanae Takaichi speaks during a press conference at the prime ministers office, in Tokyo, Japan, October 21, 2025. Eugene Hoshiko/Pool via REUTERS

TOKYO - Japans new prime minister, Sanae Takaichi, said on Tuesday she hopes the central bank conducts monetary policy to sustainably achieve its 2% inflation target driven not just by cost-push factors but wage gains.

In terms of economic policy, the final responsibility falls upon the government, Takaichi told a news conference, adding that specific means of monetary policy was up to the Bank of Japan to decide.

Whats most important is for the BOJ and government to coordinate policy and communicate closely, she said.

Takaichi also said she has instructed her cabinet to compile a package of measures to cushion the economic blow from rising living costs. REUTERS