Japan’s government on Monday tried to calm a potentially explosive row with the central bank over the timing of monetary tightening, saying there was no “wavering of trust” in its relationship with the Bank of Japan.

The ministry of finance (MoF) has become increasingly nervous at signs that the central bank is preparing to exit from its ultra-loose quantitative easing policy in the first half of next year as deflation is finally squeezed from the economy. (Source: FT)

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