Japanese Prime Minister Naoto Kan and Bank of Japan Governor Masaaki Shirakawa may not meet next week as expected, Jiji news agency reported. Financial markets had expected Kan to pressure the BoJ for action in the face of the yen's strength. But Jiji, in a report late on Friday, said the government is considering postponing the meeting to avoid giving an impression that it is intervening with the BoJ's policy decisions. Kan and Shirakawa may hold a teleconference instead, it added.
Markets have been rife with speculation that the BoJ may try to pre-empt government pressure to further loosen its already easy policy at an emergency meeting before or shortly after Shirakawa's expected meeting with Kan. But the BoJ is unlikely to act before its next regular policy meeting on September 6-7 unless the yen heads towards its all-time high past 80 to the dollar at a pace of 2 to 3 yen per day, sources say.
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