An editorial in The Wall Street Journal said that Prime Minister Takaichi Sanae (高市早苗) is clinging to massive fiscal spending and that revitalizing the domestic market is necessary for economic reform and yen stability.
In an editorial published online on the 18th, The Wall Street Journal said that Prime Minister Takaichi Sanae (高市早苗) is “clinging to massive fiscal spending that has little effect on economic growth and further increases the debt burden.” It said that reforms to revitalize the domestic market, in addition to the Bank of Japan’s monetary policy, are essential to halt Japan’s slowing economic growth and the yen’s downward trend.
The editorial said that although the Bank of Japan raised its policy rate from 1% to 1.25% on the 18th, the yen weakened immediately afterward. It also referred to the opposition to the decision by 2 policy board members appointed under the Takaichi administration, saying that investors are becoming increasingly skeptical of efforts to normalize Japan’s monetary policy.