Economy
Japan's Katayama finds 7 trillion yen in idle funds as economist Kiuchi says Japan needs no excessive easing
Japanese official Katayama is reviewing the state budget and found roughly 7 trillion yen in idle funds, while economist Kiuchi said Japan does not need excessive monetary easing.
Kiuchi's remarks reduce the risk of government pushback against further Bank of Japan (BOJ) tightening, which markets may read as supportive of an earlier rate hike.
For beginners Government fiscal discipline and central bank independence are linked: if authorities don't pressure the regulator to keep policy loose, the central bank has more room to raise rates to fight inflation.