Kazuo Ueda, the Governor of the Bank of Japan, met with Prime Minister Sanae Takaichi on the evening of February 16 at the Prime Minister's official residence for about 15 minutes, marking the first meeting post the recent House of Representatives election in which the ruling Liberal Democratic Party achieved a decisive victory. Following the meeting, Ueda informed the press that it was a regular and general exchange of ideas, indicating that there were no specific requests from the Prime Minister regarding monetary policy. This indicates a lack of immediate pressure for changes in monetary policy from the government side.

Ueda’s last meeting with Takaichi was in November of the previous year, making this meeting notable due to the recent political context. Takaichi has been advocating for 'responsible proactive fiscal measures' and is perceived to lean towards monetary easing strategies. Financial markets were keenly interested in the outcomes of this meeting, reflecting anticipation of potential shifts in the Bank of Japan's policies. However, Ueda refrained from providing detailed insights about the discussion, emphasizing that a range of topics were covered but avoiding disclosure of specifics.

The meeting also raises questions about the independence of the Bank of Japan amidst fiscal pressures and the implications for future monetary policy, especially regarding interest rates amid concerns related to the depreciation of the yen. Ueda’s comments suggest cautious monitoring of the economic environment as they navigate potential adjustments to policy in response to financial market signals and macroeconomic trends, signaling that the tensions between fiscal and monetary policy in Japan are still very much present.