DISCONTENT:
Over 70% of respondents disapproved of steps to combat rising living costs, while Japan’s leader faces decision on fate of promised tax cut
Japanese Prime Minister Sanae Takaichi yesterday said that government efforts to boost the country’s growth potential would 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 that while the Bank of Japan (BOJ) 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.
Japanese Prime Minister Sanae Takaichi speaks during a budget committee session in the lower house of parliament in Tokyo yesterday.
“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. Takaichi made the remark when asked by an opposition lawmaker on whether the yen’s recent slump to a 40-year low could have been caused by the administration’s reservations over the BOJ’s rate hike plans.
