At the House of Representatives plenary session, Prime Minister Takaichi Sanae (高市早苗) stated that reflationary policy is not necessary at this stage, while reiterating her intention to maintain the policy of responsible proactive fiscal policy.
At the House of Representatives plenary session, Prime Minister Takaichi Sanae (高市早苗) expressed the view that this is a phase in which so-called reflationary policy is not necessary. Regarding the Bank of Japan's independence, she said that her Cabinet respects to the fullest extent the Bank's operations under the Bank of Japan Act.
The government reiterated its basic policy of raising potential growth through domestic investment, creating a virtuous economic cycle through increases in employment and income, and increasing tax revenue. At the same time, it emphasized the distinction between reflationary policy and proactive fiscal policy.
Although the policy of pursuing “responsible proactive fiscal policy” will be maintained, she said the government would respond flexibly if the economy or markets move differently from expectations. She also reiterated the importance of transparent communication with markets and maintaining confidence.
While the finance minister and others have previously explained that the government was not pursuing reflationary policy, the prime minister herself has now publicly denied its adoption.