Japan's long-term bond yield breaks above 3%, Takaichi says economic and fiscal policy will be judged at the appropriate time

PANews reported on September 1 that Japanese Prime Minister Sanae Takaichi responded on Tuesday to the issue of long-term interest rates exceeding 3% for the first time in 30 years. She said that economic and fiscal management "must of course make appropriate judgments in a timely manner based on the assessment and analysis of various economic conditions, including interest rate trends." Regarding the direction of interest rates, she only said: "If I make specific comments, they could have unintended effects, so I will not comment on this." She explained that interest rate levels are determined by the market under the influence of various factors, including the policy situations of other countries. When asked how to ensure market confidence, she stressed: "We will respond appropriately to necessary fiscal needs and earnestly achieve a balance between a strong economy and fiscal sustainability." She said that budget formulation reforms will be vigorously promoted in accordance with the Basic Policy on Economic and Fiscal Management and Reform (the "Honebuto Policy") finalized in July. She called for recurring policy measures not to rely on large-scale supplementary budgets, but to be arranged through the initial budget.