Mizuho: Japan PM Sanae Takaichi May Need More Cautious Market Communication

Mizuho Securities economist Yusuke Matsuo said Japan Prime Minister Sanae Takaichi may need to consider more cautious, more market-aware communication on highly sensitive issues. According to Jin10, Matsuo said those topics include the funding source for a planned food consumption tax cut, as well as her large-scale investment plan. Japanese government bond yields have surged recently as markets worried that political pressure could delay interest rate hikes by the Bank of Japan and intensify inflation risks. Japan's Finance Minister Satuki Katayama emphasized the central bank's independence on Friday, saying specific monetary policy measures are decided by the Bank of Japan.