World Economy

Japan's Takaichi Proposes BOJ Fund Sales for Strategic Industries

Prime Minister Sanae Takaichi announced plans to redirect proceeds from the Bank of Japan's accelerated exchange-traded fund sales toward investments in economically critical sectors. The proposal aims to strengthen Japan's economic resilience. The initiative comes as Japanese nominal wages climb at their fastest rate in roughly three decades, signaling sustained labor cost pressures. The BOJ's monetary policy trajectory remains oriented toward rate increases, with market expectations pointing to potential action as early as December. Takaichi's strategy reflects broader concerns among policymakers about protecting domestic industries while managing macroeconomic headwinds. The government sees ETF sales as a potential funding mechanism to bolster competitiveness in strategic areas without additional fiscal outlays.