Japan faces hurdles in tightening policy

The Japanese government intends to support economic growth by adopting an accommodative monetary policy focused on boosting private demand and achieving stable price increases. This is part of a long-term plan that proposes greater coordination with the Bank of Japan. The move comes amid concerns over tensions with the central bank regarding interest rate hikes, as the draft includes a clear call to strengthen current monetary policies to support growth and raise inflation rates while maintaining low borrowing costs. This reflects the government's worry about the economic repercussions of an early tightening of monetary policy.

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