Media reports that say Prime Minister Sanae Takaichi’s administration is attempting to keep interest rates low and weaken fiscal improvement efforts aren’t accurate at all, according to economic policy minister Minoru Kiuchi.
“There’s absolutely no truth to reports suggesting that the government is encouraging low interest rates as part of its fiscal expansion policy,” Kiuchi said Tuesday at a regular news briefing in Tokyo. “If our intentions haven’t been accurately conveyed, we intend to make even greater efforts to promote understanding.”
Kiuchi’s remarks come as financial markets watch closely for clues about Takaichi’s plans to implement an economic strategy that calls for a massive increase in investment without worsening the nation’s already heavy debt burden. While the central bank has already raised interest rates twice since Takaichi became the nation’s prime minister last autumn, investors are still trying to gauge if she is trying to slow down the Bank of Japan’s efforts to raise borrowing costs.