Ahead of the extraordinary Diet session, Minister of Finance Katayama (片山) discussed the yen’s depreciation, coordinated Japan-U.S. intervention and measures against opportunistic price increases following consumption tax cuts, outlining the government’s unified position and its policy direction for future measures.
Minister of Finance Katayama (片山) expressed the view that “a unified position is being developed within the government” regarding its policy on the yen’s depreciation, and explained the circumstances behind the coordinated Japan-U.S. intervention carried out on a scale not seen in 28 years, as well as the response to speculative movements. Katayama (片山) indicated an intention to closely monitor how future policy operations will take shape in light of the impact of yen depreciation and trends in the dollar-yen exchange rate.
In Diet testimony on consumption tax cuts, the impact on tax-exempt businesses and farmers was also raised, and Katayama (片山) stated a policy of finalizing measures as early as the start of next week. Regarding funding, Katayama (片山) expressed the view that it would be financed through a review of subsidies and funds rather than relying on deficit-financing government bonds, and showed a willingness to pursue budget reform for the first time in 80 years.
Katayama (片山) also referred to Prime Minister Takaichi’s (高市) view on accepting yen depreciation, and reaffirmed the position that Katayama (片山) is “not a reflationist” regarding views on monetary easing and fiscal policy. Katayama (片山) emphasized an intention to carefully assess the impact of policy decisions on markets while monitoring developments at the start of next week.
The interview outlined the government’s unified position and the direction of future measures across several areas, including yen depreciation and intervention, consumption tax cuts, and securing funding.