The Bank of Japan declined to sign a joint statement from central banks supporting Federal Reserve Chair Jerome Powell, aligning with its longstanding practice of avoiding controversial topics amid sensitivities over U.S. relations and an upcoming election.
The Bank of Japan (BOJ) opted out of a list of central banks supporting Federal Reserve Chair Jerome Powell, highlighting its aversion to political involvement and the government's hesitation to strain ties with the United States, especially with an early election looming.
The sensitivity of the issue was evident as the BOJ informally consulted the government on whether to sign the joint statement, but officials could not approve in time for its release, according to two government sources.
"The reason we couldn't immediately say yes is partly because of our relationship with the U.S.," one source said on condition of anonymity due to the matter's delicacy.
Analysts note that the BOJ's decision follows its long-held practice of withholding comments on controversial topics. Key figures mentioned include BOJ, Federal Reserve, Jerome Powell, Donald Trump, Sanae Takaichi, and Kazuo Ueda.
