Japan's prime minister reshuffles cabinet, retains key ministers
Japanese Prime Minister Sanae Takaichi has conducted her first cabinet reshuffle, keeping key ministers and appointing a coalition partner to the cabinet.
Japan's Prime Minister Sanae Takaichi has maintained her cabinet with key ministers, including her ally Minoru Kiuchi as economy minister, signaling no change to her spending plans. Takaichi's fiscal policies have faced criticism due to Japan's massive public debt. Kiuchi stated that his goal is to achieve a strong economy alongside fiscal sustainability, dismissing concerns over the policies.
Takaichi retained Finance Minister Satsuki Katayama, a conservative on fiscal policy, which is expected to be well-received by bond markets. Market sensitivity to fiscal risks is driving the need to stabilize long-term interest rates, according to senior economist Keiji Kanda. Takaichi's policies have caused bond yields to reach three-decade highs, reflecting concerns about the impact on Japan's public debt, which is the largest among advanced nations.
The government's budget requests have swelled to pandemic-era levels, and Japan faces potential higher defence spending. The Bank of Japan is expected to raise interest rates as it aims to wean the economy off massive stimulus.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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