Katayama Calls for Clear Communication on Japan's Fiscal Policy Intentions

Japan's Finance Minister Satsuki Katayama emphasized the need to communicate with financial and Japanese Government Bonds (JGBs) markets regarding the administration's intentions towards fiscal policy. This comes after Japan Prime Minister Sanae Takaichi stated that the government needs to exit its excessively tight fiscal policy to spur growth, but also warned against reckless spending.

Katayama noted that it is essential to inform the JGB market about the process of compiling the budget, as this has not been done in the past. He added that monetary policy is part of economic policy and that the government's relationship with the Bank of Japan (BoJ) has been smooth.

Katayama also mentioned that the weak Yen has both merits and demerits, but did not comment on potential intervention. He stated that the government's stance on foreign exchange remains unchanged, and that they are ready to respond as needed in coordination with the US.