Japan Embraces Fiscal Discipline, Sees No Need for Excessive Stimulus

Japan's Finance Minister Satsuki Katayama is taking steps to streamline government subsidies and funds, announcing that she will strengthen efforts to promote a Japanese version of DOGE, the cost-cutting initiative launched under President Donald Trump.

Katayama said about 200 idle funds worth roughly 7 trillion yen will be drastically streamlined in the budget process as part of her push to reclaim unused money. This comes as investors pay close attention to fiscal positions, with sovereign bond yields rising globally and concerns about government borrowing feeding into long-dated debt markets.

Economy Minister Minoru Kiuchi echoed Katayama's stance, saying Japan no longer requires extraordinary monetary stimulus now that it has escaped deflation. He noted that the BOJ's earlier decision to end yield curve control and raise its policy rate to 1.25%, a 31-year high, in September reflects this shift.

The government's stance is seen as supportive of further monetary tightening by the BOJ, which meets on October 29-30. Tokyo inflation data released on Friday showed core prices rising 2.7% in September, above the BOJ's 2% target.