Takaichi Retains Key Ministers in Japan's Cabinet Reshuffle

Japanese Prime Minister Sanae Takaichi has retained her key ministers in a cabinet reshuffle aimed at solidifying the ruling coalition and advancing a food tax cut. The small-scale reshuffle comes as Takaichi navigates rising inflation and a weak yen while pursuing a consumption tax cut on food starting next year.

Takaichi kept core members of her team, including finance minister Satsuki Katayama, foreign minister Toshimitsu Motegi, and defence minister Shinjiro Koizumi. Under finance minister Katayama, Japan has repeatedly intervened in the foreign exchange market to prop up the falling yen.

The prime minister also retained key economic ministers, including trade and industry minister Ryosei Akazawa, who has led Japan's tariff negotiations with the US. The policy of expansive government spending has rattled the markets, pushing Japan's benchmark bond yield to around 3.0%, its highest level in three decades.

Takaichi's tax cut pledge is popular among voters, but economists have criticised the plan, warning that she has failed to identify around five trillion yen (US$32 billion) needed annually to fund it.