Japan's fin min rolling out the commentary again, making a point that the Bank of Japan is not a branch of the government and is not there to fund government spending. Suzuki's response comes after former Prime Minister Abe, earlier this week, described the BOJ as a government subsidiary that can fund government spending without limit.
Suzuki:
- G7 likely to discuss global economic challenges caused by russia's invasion of ukraine
- BOJ holds jurisdiction over monetary policy, management of its operations
- BOJ is not government's subsidiary
- BOJ is buying govt bonds as part of its monetary policy effort to achieve price target
- BOJ holdings of govt bonds could fluctuate sharply depending on monetary policy decisions at the time
- inappropriate to conduct fiscal policy on the assumption BOJ will continue to buy bonds indefinitely
Dunno what Abe is playing at, maybe he was just in an obstreperous mood?
