Japan's Minister of Growth Strategy Minoru Jonouchi said that Japan's spending plan will provide a long-term boost to the yen, and refuted market concerns about the country's financial situation. In an interview on Monday, Minoru Jonouchi said, “Japan's fiscal policy is not as expansionary as people think because we attach great importance to sustainability.” He also emphasized that Japan is making efforts to shift to a measurement method that is more in line with “international standards,” that is, the debt level is assessed by the ratio of debt to economic output. Japanese Prime Minister Sanae Takaichi introduced a series of spending plans to revive the economy, causing the market to worry about funding sources. The city actually reduced the financial burden brought about by Takaichi Sanae's unprecedented plan. According to the plan, Japan will invest 370 trillion yen in key industries over 14 years. He said that supporting industries such as artificial intelligence, semiconductors, and gaming is necessary for Japan's economic growth, and defended this road map drawn up with his participation. “As investment in Japan and Japanese yen denominated assets increases, demand for yen will naturally rise,” said Minoru Jonai. Previously, the US and Japan rarely interfered in the foreign exchange market to boost the yen, but the related effects are beginning to subside. Regarding the two-year consumption tax reduction plan, Shirouchi actually thinks that financing is not very difficult. The plan is expected to cost around 5 trillion yen each year. “Raising 5 trillion yen is not that difficult,” he said. He pointed out that large-scale adjustments to the government's fiscal revenue and expenditure will generate savings that can be used to make up for this part of the funds. When talking about monetary policy, Minoru Jonouchi said that the Bank of Japan is currently doing a good job. This statement may mean that he is not strongly opposed to raising interest rates in the short term. Market expectations for the Bank of Japan's interest rate hike in September or October continue to heat up.

Japan's Minister of Growth Strategy Minoru Jonouchi said that Japan's spending plan will provide a long-term boost to the yen, and refuted market concerns about the country's financial situation. In an interview on Monday, Minoru Jonouchi said, “Japan's fiscal policy is not as expansionary as people think because we attach great importance to sustainability.” He also emphasized that Japan is making efforts to shift to a measurement method that is more in line with “international standards,” that is, the debt level is assessed by the ratio of debt to economic output. Japanese Prime Minister Sanae Takaichi introduced a series of spending plans to revive the economy, causing the market to worry about funding sources. The city actually reduced the financial burden brought about by Takaichi Sanae's unprecedented plan. According to the plan, Japan will invest 370 trillion yen in key industries over 14 years. He said that supporting industries such as artificial intelligence, semiconductors, and gaming is necessary for Japan's economic growth, and defended this road map drawn up with his participation. “As investment in Japan and Japanese yen denominated assets increases, demand for yen will naturally rise,” said Minoru Jonai. Previously, the US and Japan rarely interfered in the foreign exchange market to boost the yen, but the related effects are beginning to subside. Regarding the two-year consumption tax reduction plan, Shirouchi actually thinks that financing is not very difficult. The plan is expected to cost around 5 trillion yen each year. “Raising 5 trillion yen is not that difficult,” he said. He pointed out that large-scale adjustments to the government's fiscal revenue and expenditure will generate savings that can be used to make up for this part of the funds. When talking about monetary policy, Minoru Jonouchi said that the Bank of Japan is currently doing a good job. This statement may mean that he is not strongly opposed to raising interest rates in the short term. Market expectations for the Bank of Japan's interest rate hike in September or October continue to heat up.