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Japan finance minister stresses need to communicate with JGB markets

In Asian trading, the yen saw a slight bid after the remarks, with USD/JPY around 163.73.

Reported · Written up by our desk · Central Banks

Japan Finance Minister Satsuki Katayama said the administration needs to communicate its fiscal policy intentions to financial markets, including Japanese Government Bonds (JGBs), ahead of the budget compilation process, according to FXStreet.

Katayama said Japan’s prime minister, Sanae Takaichi, has highlighted the need to move away from excessively tight fiscal policy to support growth, while also stating the government will avoid reckless spending and fund additional spending through expanding GDP-driven tax revenues.

The finance minister added that monetary policy is part of economic policy under the Bank of Japan act, and argued that Japan’s relationship with the BoJ has been smooth, noting the government aims for market understanding rather than specific policy pushes.

FXStreet reported that after Katayama’s comments, there was slight buying interest in the yen, while USD/JPY was nearly flat at about 163.73 at the time of publication.

Latest closeUSD/JPY 163.75 ▼0.1%

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