{"id":148982,"date":"2025-10-28T05:14:06","date_gmt":"2025-10-28T05:14:06","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/148982\/"},"modified":"2025-10-28T05:14:06","modified_gmt":"2025-10-28T05:14:06","slug":"japans-new-economy-minister-says-weak-yen-has-benefits-to-growth","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/148982\/","title":{"rendered":"Japan&#8217;s new economy minister says weak yen has benefits to growth"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Weak yen could weigh on households&#8217; purchasing power<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Weak yen boosts exporters&#8217; profits, domestic investment<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Pain from weak yen can be addressed by economic package<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Kiuchi calls for focus on stimulating demand<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Remarks come ahead of BOJ&#8217;s policy meeting this week<\/li>\n<\/ul>\n<p>TOKYO, Oct 28 (Reuters) &#8211; Japan&#8217;s new economic revitalisation minister, Minoru Kiuchi, said on Tuesday a weak yen has benefits to the economy and its demerits could be addressed by swiftly compiling a package of steps to ease the pain from rising living costs.<\/p>\n<p>He also said the new administration&#8217;s priority would be to accelerate economic growth, so that the benefits of its recovery can be delivered to a broader population.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/japans-new-economy-minister-says-weak-yen-has-benefits-growth-2025-10-28\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fasia-pacific%2Fjapans-new-economy-minister-says-weak-yen-has-benefits-growth-2025-10-28%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>The remarks highlight the focus Prime Minister Sanae Takaichi&#8217;s administration puts on reflating the economy through expansionary fiscal policy, a contrast to the closer attention her predecessor placed on inflationary risks from a weak yen.<\/p>\n<p>&#8220;A weak yen pushes up import costs and domestic prices, which in turn effectively weighs on the purchasing power of households and some companies,&#8221; Kiuchi told a news conference.<\/p>\n<p>&#8220;But there are also merits such as the boost it gives to exporters&#8217; profits and domestic investment,&#8221; he said, adding that it was important for exchange rates to move stably reflecting fundamentals.<\/p>\n<p>NEW ADMINISTRATION, NEW PRIORITIES<\/p>\n<p>A weak yen has become a political headache for policymakers in recent years as it pushes up import costs and broader inflation, which has remained above the Bank of Japan&#8217;s 2% target for well over three years.<\/p>\n<p>The BOJ&#8217;s exit from a decade-long, massive stimulus in 2024, and two interest rate hikes through January, came amid political calls for action to combat sharp yen falls.<\/p>\n<p>Markets widely expect the central bank to keep interest rates steady at 0.5% at its <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/bank-japan-consider-best-timing-next-rate-hike-2025-10-24\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">two-day policy meeting<\/a> ending on Thursday, and await more clarity on the new administration&#8217;s policies before lifting borrowing costs to 0.75%.<\/p>\n<p>&#8220;We will continue to closely monitor the impact of currency moves on Japan&#8217;s economy,&#8221; Kiuchi said. &#8220;As for the rising cost of living, we&#8217;ll deal with that by compiling a comprehensive economic package,&#8221; he added.<\/p>\n<p>Known as a fiscal dove, Takaichi is preparing an economic package that is likely to exceed last year&#8217;s $92 billion to help households tackle inflation, <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/japans-new-pm-is-preparing-large-economic-stimulus-tackle-inflation-sources-say-2025-10-22\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">sources have told Reuters<\/a>.<\/p>\n<p>While being mindful of the need for fiscal discipline, Japan can boost its long-term potential growth by stimulating demand and keeping the labour market tight, Kiuchi said.<\/p>\n<p>There are varying views on how much excess demand is desirable for Japan&#8217;s economy, which is why the government and BOJ are scrutinising inflation and wage developments, he added.<\/p>\n<p>Japanese share prices have soared on market expectations of big spending by Takaichi, though some analysts warn of the strain her plans add to the country&#8217;s already dire finances.<\/p>\n<p>Moody&#8217;s Ratings affirmed Japan&#8217;s A1 debt rating on Monday, citing rising tax revenues backed by resilient domestic demand and solid nominal economic growth.<\/p>\n<p>But the International Monetary Fund has warned that any spending must be targeted and temporary.<\/p>\n<p>&#8220;Japan&#8217;s economy will go back to potential growth. They don&#8217;t need to provide (stimulus),&#8221; Krishna Srinivasan, director of the IMF&#8217;s Asia and Pacific Department, told Reuters.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Leika Kihara; Editing by Jacqueline Wong and Sam Holmes<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Weak yen could weigh on households&#8217; purchasing power Weak yen boosts exporters&#8217; profits, domestic investment Pain from weak&hellip;\n","protected":false},"author":2,"featured_media":148983,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[2786,82703,79,84370,82543,82538,82546,82556,82549,82541,82550,84460,84041,84146,82547,84461,82557,82540,82710,82551,82702,83116,179,18,87582,45748,85214,19,84368,17,11203,83122,85212,82508,82534,82533],"class_list":{"0":"post-148982","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-asia","9":"tag-asxpac","10":"tag-business","11":"tag-cen","12":"tag-destabn","13":"tag-destabx","14":"tag-destbnx","15":"tag-destd","16":"tag-destdnp","17":"tag-deste","18":"tag-destfun","19":"tag-destj","20":"tag-destm","21":"tag-destortao","22":"tag-destpsc","23":"tag-destptd","24":"tag-destrbn","25":"tag-destrnp","26":"tag-destseabs","27":"tag-destucdptest","28":"tag-easia","29":"tag-eco","30":"tag-economy","31":"tag-eire","32":"tag-frx","33":"tag-gen","34":"tag-gfin","35":"tag-ie","36":"tag-int","37":"tag-ireland","38":"tag-jp","39":"tag-mce","40":"tag-plcy","41":"tag-pol","42":"tag-topcmb","43":"tag-topnws"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115450089608114775","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/148982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=148982"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/148982\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/148983"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=148982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=148982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=148982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}