The Abe administration has been voicing their concerns loudly as we near the next BOJ meeting. On Thursday, the 18th, we should know if the BOJ will raise rates or not.
On Sunday, the 14th, one of the most powerful politicians on the Abe administration Mr. Nakagawa, stated that he was strongly against a rate raise and went as far as saying if rates were to go up the BOJ had some explaining to do. He said that they would go as far as revising the law, which concerns the independence of the BOJ. Them are strong words.
Will the BOJ go against these concerns? Really hard to say. But the BOJ stance is so different from that of the FED or ECB. I pity the BOJ; they are being badgered all the time by the government. They are not as independent as the other major central banks.
Anyway last December they did not raise rates. Before the December meeting the BOJ officials were very hawkish and still they did not raise rates and it was an unanimous decision not to raise rates, no dissent. This time around I have not heard much hawkish speak from the BOJ.
Actually I thought the chances of the BOJ raising rates last December were really high, especially with all the talk from the BOJ officials. This time around though, there is too much opposition from the government. I believe the BOJ will leave rates as is. Could see the dollar go beyond 121.40, the most recent high.