Satsuki Katayama is Japan’s Finance Minister, steering policy as the yen weakens and debates over debt, bonds, and stimulus unfold. She has engaged with US counterparts on fiscal coordination.
Since October, Prime Minister Sanae Takaichi has pushed a rapid reorientation of Japan's postwar posture: her government has eased lethal-weapons export rules, the ruling party has opened formal talks on revising the pacifist constitution, and Tokyo has expanded defence ties and arms sales with partners including Australia and potential buyers such as the Philippines and Poland.
The Bank of Japan has raised its policy rate to 1% from 0.75% in line with expectations, as the yen remains near multi-decade lows amid pressure from the Iran war and higher oil prices. Officials warn of ongoing volatility and potential further action to stabilize markets and inflation.
The yen has weakened to multi-decade lows as US rates remain higher than Japan's. Intervention is being considered, but the long-running carry trade and energy costs keep downward pressure on the currency. Markets are watching potential official action and the broader implications for Japan's economy and global markets.
Finance officials signal ongoing reviews that could steer Japan’s GPIF toward greater yen-denominated assets, amid government talk of encouraging domestic investment. The GPIF’s next review is due in 2030, with current allocations unchanged for now.