22.10.202503:48:07UTC+00Japan Pledges Continued Support as Inflation and Tariffs Bite

Japan's newly appointed Economics Minister, Minoru Kiuchi, has pledged to bolster the nation’s economy amidst escalating U.S. tariffs and persisting domestic inflation. In a statement on Wednesday, Kiuchi acknowledged that the rebound in consumer spending remains fragile, primarily due to ongoing inflationary pressures. He underscored the necessity for governmental intervention until real wages experience considerable growth, asserting that, "The government must persist in its robust support of the economy." Kiuchi also highlighted the importance of closely monitoring U.S. trade policies and extending support to impacted businesses, including financial assistance for small enterprises. Regarding monetary policy, he articulated the government's intent to collaborate closely with the Bank of Japan to maintain a stable inflation rate of 2%. He stressed the critical role of the BoJ in managing monetary policy to achieve both sustainable economic expansion and price stability. These remarks coincide with new Prime Minister Sanae Takaichi's directive to her cabinet, instructing them to devise an economic stimulus package aimed at alleviating the financial pressures on households.