Japan's Economy Minister Sees No Need for Loose Monetary Policy

Japan's Economy Minister Minoru Kiuchi has stated that the country no longer needs excessively loose monetary policy to combat deflation. Speaking at a news conference, Kiuchi emphasized that Japan has emerged from an era of reflationist policies introduced under former Prime Minister Shinzo Abe in 2013.

Kiuchi made these remarks in response to reporters' questions about the Bank of Japan's September policy meeting, which showed a government representative calling for caution over further interest rate hikes. The Economy Minister noted that Japan is no longer in a deflationary period and therefore does not need policies that pursue inflation.

Kiuchi's comments add to earlier statements from Finance Minister Satsuki Katayama, who said she made it clear to US Treasury Secretary Scott Bessent last week that Prime Minister Sanae Takaichi is not a reflationist. Kiuchi himself has been associated with a group of lawmakers calling for expansionary spending and was previously cautious towards interest rate hikes.