Finmin says Japan must watch economic backdrop to calls for BOJ rate hike
But specific monetary policy decisions were up to the Bank of Japan, he said at a news conference.
Kato declined to comment when asked about U.S. Treasury Secretary Scott Bessent's remarks that the BOJ is likely to raise rates and that it was behind the curve in tackling inflation risks.
The remarks by Bessent helped push up the yen and Japanese government bond (JGB) yields, as some market players saw an increasing chance of a near-term rate hike by the BOJ.
Economic revitalisation minister Ryosei Akazawa said Bessent's comments were not intended to pressure the BOJ into raising borrowing costs.
"He absolutely was not calling on the BOJ to raise rates," and was rather predicting it could do so as the bank was behind the curve in addressing inflationary risks, Akazawa told a separate news conference.
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