Takaichi Defends Economic Policy Amid Yen Decline and Approval Drop

Japan's Prime Minister Takaichi defended her administration's economic policies on July 27, 2026, amid growing concerns over the yen's decline to a 40-year low. The Prime Minister acknowledged that while the Bank of Japan controls monetary policy, it is legally required to coordinate closely with the government on economic measures.

Takaichi stated that boosting growth potential and strengthening Japan's competitiveness would lead to market trust in the yen. She emphasized the importance of future investments for growth, saying 'If we put off investment for the future, Japan will lose the opportunity to grow.'

The Prime Minister's approval rating has fallen sharply to 57% in July from 69% in June, according to a Yomiuri newspaper poll. The poll also showed that over 70% of respondents disapproved of the government's steps to address rising living costs.