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Japan has declined to comment on why the Bank of Japan (BOJ) did not join a rare joint statement issued by other major central banks in support of U.S. Federal Reserve Chair Jerome Powell, following reports of threats of criminal indictment from the Trump administration. The stance highlights Japan’s long-standing approach to central bank independence while underscoring the government’s role in broader economic policy.
Speaking at a regular press conference on Wednesday, Japan’s top government spokesman and Chief Cabinet Secretary Minoru Kihara said the matter was one for the Bank of Japan itself. “The matter concerns the BOJ’s own judgment, so the government will refrain from commenting,” Kihara stated, effectively distancing the administration from the central bank’s decision not to participate in the statement.
The BOJ’s absence was notable because the joint declaration was signed by several of the world’s most influential central bank leaders. Those backing Jerome Powell included the heads of the European Central Bank, the Bank of England, and the Bank of Canada, along with central bank chiefs from Sweden, Denmark, Switzerland, Australia, South Korea, Brazil, and France. Such coordinated public support among central banks is uncommon and was widely interpreted as a signal of solidarity in defense of monetary policy independence.
When asked more broadly about the importance of central bank independence, Kihara emphasized Japan’s legal framework governing economic management. He said the government believes ultimate responsibility for macroeconomic policy rests with elected officials. According to Japanese law, monetary policy is considered part of the country’s overall economic policy, requiring the BOJ to maintain close coordination and sufficient communication with the government.
At the same time, Kihara reaffirmed the principle that operational decisions on monetary policy should remain with the central bank. “That said, the specific methods of monetary policy should be entrusted to the BOJ,” he added. This nuanced position reflects Japan’s balancing act between respecting central bank autonomy and ensuring alignment with national economic objectives.
The comments come amid heightened global attention on the independence of central banks, particularly as political pressure on monetary authorities has become a recurring issue in several major economies.
