Japan's Takaichi defends policy as underpinning yen, approval rating slumps
Japanese Prime Minister Sanae Takaichi is defending her economic policies as the yen hits a 40-year low and her approval ratings decline. The government is struggling to balance fiscal expansion with the rising cost of living and potential tax relief measures.
Why it matters
Japan's economic stability and the government's ability to manage currency fluctuations have significant implications for global markets and regional security spending.
TOKYO — Japanese Prime Minister Sanae Takaichi said government efforts to boost the country's growth potential will underpin market trust in the yen, countering views that the rising cost of living from the weak currency was hurting her approval ratings.
She also said while the Bank of Japan held jurisdiction over monetary policy, the central bank was required by law to work closely with the government on economic policy.
"Exchange rates move on various factors and are set by markets. It's hard to gauge the direct impact of any specific factor," Takaichi told parliament on Monday (July 27).
"But creating a strong economy by boosting its growth potential and strengthening Japan's competitiveness would lead to market trust in the yen," she said.
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