Japan's Prime Minister Sanae Takaichi has firmly denied accusations that her policies are responsible for the yen's weakness and rising interest rates. During a parliamentary session, Takaichi rejected claims of a 'Takaichi weak yen' and 'Takaichi high interest rates,' asserting that such criticisms are unfounded. She emphasized her administration's commitment to strengthening the economy to restore confidence in the yen, which has hit its lowest level since 1986.
Takaichi's remarks came in response to opposition lawmaker Yoshifumi Hamano, who questioned the necessity of a second supplementary budget. The prime minister also addressed concerns about bond markets, stating that her government would 'appropriately control the amount of government bond issuance.' This statement follows significant increases in Japanese government bond yields as the central bank continues to normalize monetary policy.
Earlier this year, Takaichi had suggested that a weak yen could benefit export industries by making them more competitive. However, she clarified that she does not favor any particular direction for the currency. Experts, such as Jesper Koll of Monex Group, have expressed skepticism about the government's ability to increase spending without issuing more debt, highlighting the challenges ahead for Japan's fiscal policy.