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Japanese Prime Minister Takaichi rejects criticism around weak yen and high interest rates
CNBC • • world
Key Points:
- Japan's Prime Minister Sanae Takaichi denied criticism linking her to both a weak yen and rising interest rates, stating she rejects these claims in parliament.
- She emphasized her administration's goal to boost confidence in the yen by building a strong economy amid recent currency weakness and rising bond yields.
- Under Takaichi's leadership, Japanese government bond yields have reached multi-decade highs, while the yen weakened to levels not seen since 1986, prompting market interventions by Tokyo and Washington.
- Takaichi highlighted plans to control government bond issuance despite increased spending, including a supplementary budget and food tax cuts, though experts remain skeptical about maintaining current debt levels.
- The weak yen has helped Japan's export competitiveness, and Takaichi previously described it as an opportunity for exporters, while clarifying she has no specific preference for the currency's direction.
