Katayama: Japanese Government Unanimous on End of Reflation Policy

Japanese Finance Minister Satsuki Katayama reaffirmed that the government is united in its view that reflationary policy has reached its end. This statement follows a summary of opinions from the Bank of Japan (BOJ) that raised questions over the central bank's stance on inflation control.

Katayama emphasized support for the BOJ's efforts to combat inflation, which has been a major concern amidst Japan's currency weakness against the US dollar. The Finance Minister spoke with Nikkei in Tokyo on October 2, 2026.

The government of Prime Minister Sanae Takaichi is committed to countering the Japanese yen's historic decline, and Katayama's statement aims to reassure markets of a unified stance. This move comes as part of efforts to stabilize the currency and address inflationary pressures.