Japanese Prime Minister Sanae Takaichi Defends Policies Amid Weak Yen and Rising Bond Yields
Japan's Prime Minister Sanae Takaichi has dismissed criticism linking her policies to the yen’s weakness and rising government bond yields. Speaking in parliament, she denied responsibility for these economic developments while emphasizing that a strong economy would bolster confidence in the currency. The yen is at its weakest since 1986, and long-term Japanese government bond yields have reached multi-decade highs as the central bank continues to normalize monetary policy. Takaichi also addressed concerns over increased government spending by stating her administration plans to manage new bond issuance appropriately. Earlier this year, she announced a supplementary budget and proposed cutting food taxes, raising questions about potential increases in public debt. Experts remain skeptical of Japan's ability to maintain fiscal discipline while expanding its deficit-driven policies. The yen’s depreciation has provided some support for export industries but also prompted intervention from Tokyo and Washington to stabilize the currency.
Topics: economic policy government bonds prime minister statement yen