Tensions between the new Japanese government and the Bank of Japan seem to be coming to the boil nicely.
Finance Minister Fujii has told regional branch heads of the finance ministry, that “The BOJ has repeatedly said the economy is getting better but they are dealing with different people” adding “I believe everyone here is examining the situation in a more down to earth way.”
The BOJ has come under increasing pressure from government officials, who fear that a quick end to the central bank’s emergency steps to support corporate funding would hurt an economy just emerging from its deepest recession in 60 years.
The government has been taking a generally grimmer view of the Japanese economy than the central bank.
