Takaichi Defends Economic Policies as Approval Ratings Slump

Japanese Prime Minister Sanae Takaichi defended her government's economic policies despite a recent slump in her approval ratings. The ratings fell to 57% in July, down from 69% in June, according to the Yomiuri newspaper.

Takaichi said that efforts to boost Japan's growth potential would help underpin market trust in the yen. She emphasized that the Bank of Japan has jurisdiction over monetary policy, but is required by law to work closely with the government on economic matters.

The yen recently hit a 40-year low, causing concerns about rising living costs and its impact on Takaichi's popularity. Her administration has been criticized for its expansionary fiscal and monetary policies, which have led to higher bond yields and a weaker yen.

Takaichi also faced criticism over her pledge to cut an 8% levy on food sales, which was meant to cushion the blow from rising living costs. However, the ruling and opposition parties have failed to reach an agreement on details of the two-year tax suspension idea.