World Economy

Japan Finance Minister Defends Takaichi Against Spending Concerns

Japan's finance minister moved to reassure investors Friday that Prime Minister Sanae Takaichi will not pursue excessive fiscal spending or pressure the Bank of Japan to maintain accommodative monetary policy.

The statement addresses market concerns about the new administration's economic direction. Takaichi met with U.S. President Donald Trump earlier this week in New York, where currency weakness became a focal point of discussion. The yen's recent depreciation has drawn scrutiny from Washington policymakers.

Meanwhile, the Bank of Japan's underlying inflation gauge accelerated last month, surpassing the central bank's target and bolstering the case for additional interest rate increases. BOJ officials have cautioned that price pressures risk overshooting policy objectives, signaling a more hawkish stance ahead.