Ueda says he told Ishiba BOJ will move cautiously in rate hike
Ueda highlights uncertainties, risks to Japan39;s economy
Economy minister urges BOJ to be cautious of raising rates
Political dynamics may delay BOJ rate hikes, analysts say

Oct 2 Reuters Prime Minister Shigeru Ishiba said Japan is not in an environment for an additional rate increase, in an apparent effort to shake off his reputation as a monetary hawk, after a meeting with Bank of Japan Governor Kazuo Ueda on Wednesday.

I do not believe that we are in an environment that would require us to raise interest rates further, Ishiba told reporters on Wednesday night in the most explicit remark to date from a prime minister pushing back against further rate hikes.

The yen weakened after Ishiba39;s remarks as markets interpreted them as reducing the chance of a nearterm interest rate hike. The dollar was last up 0.77 against the yen at 144.71 yen per dollar.

A majority of economists polled by Reuters on Sept. 412 had expected the BOJ to raise rates again by yearend.

Ishiba, who was officially appointed as prime minister on Tuesday, had been seen by markets as endorsing the BOJ39;s policy normalisation, in part because of his comments to Reuters in August that a gradual hike in ultralow rates will help boost Japan39;s profitability.

His comments, as well as his focus on pulling Japan fully out of economic stagnation, underscore the new administration39;s preference for the BOJ to go slow in hiking rates,…