Sanae Takaichi Vows Bold Investment to Stabilize Yen

Prime Minister Sanae Takaichi announced plans to stabilize the yen by enhancing Japan's global economic competitiveness through bold investments in growth areas and crisis management. In a recorded interview, Takaichi denied that Japan's economic policy is aimed at manipulating exchange rates, asserting that increasing the economy's supply capacity will restore market confidence in the currency.

This strategy follows a period where interest rate hikes by the Bank of Japan failed to stop the yen's decline, which has driven up inflation and import costs. Takaichi noted that she discussed the currency's undervaluation with US President Donald Trump. Additionally, US Treasury Secretary Scott Bessent endorsed Japan's economic policy during talks with Finance Minister Satsuki Katayama on August 31.

Addressing fiscal concerns, Takaichi stated the government will set clear priorities to manage budget requests totaling 143 trillion yen for the next fiscal year. She maintained that the administration will manage bond issuances to steadily lower the debt-to-GDP ratio while pursuing both a strong economy and sustainable fiscal policy.