Japan PM to keep finance minister Katayama in cabinet reshuffle, sources say
TOKYO: Japanese Prime Minister Sanae Takaichi is set to retain Satsuki Katayama as finance minister in a cabinet reshuffle likely later this month, four government people familiar with the matter said. The retention indicates preference for continuity in financial policy as the government navigates talks with the US on foreign exchange and prepares to push through a flagship consumption tax cut…
Japanese Prime Minister Sanae Takaichi is reportedly planning to keep finance minister Satsuki Katayama in her cabinet following a likely reshuffle later this month. This decision suggests the government's preference for continuity in financial policy as they engage in talks with the US on foreign exchange matters. Katayama, a former finance ministry bureaucrat, has played a crucial role in negotiating a rare joint US-Japan yen intervention in late July.
Takaichi values Katayama's role in facilitating this coordinated intervention and their close relationship with US Treasury Secretary Scott Bessent, according to a government source. Removing Katayama at this time could negatively impact markets, especially given Bessent's increased pressure on Japan. Katayama has reportedly discussed the matter with Bessent about a dozen times, showing their strong rapport.
Economists warn that replacing Katayama could unsettle markets if a new finance minister is seen as less concerned with the risks posed by a weaker yen or rising government bond yields.
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