Japanese finance minister Katsunobu Kato speaks in Tokyo

Japanese finance minister Katsunobu Kato speaks in Tokyo

In a press conference held in Tokyo on July 2, 2025, Japanese Finance Minister Katsunobu Kato discussed the fiscal health of the country and addressed market concerns following the recent upper house election. The election saw significant losses for the ruling coalition, leading to a potential shift in the government's fiscal policy.

Minister Kato acknowledged the bond market's concerns about Japan's fiscal policy, noting that the recent market movements reflected worries about the country's financial health [2]. He emphasized that the government is aware of these concerns and is committed to addressing them. Kato stated that the government will carefully respond to market voices, implement appropriate debt management strategies, and work towards improving fiscal health to maintain market confidence.

The finance minister also addressed the proposal by opposition parties to cut the consumption tax as a price relief measure. Kato described the tax cut as inappropriate, stating that it presents challenges as a price relief measure [1]. He noted that the election results were tough for the Liberal Democratic Party and that the government will take the outcome seriously.

The comments by Minister Kato come at a critical time for Japan, as the country grapples with economic stability and fiscal policy. The government's response to market concerns and the opposition's tax cut proposal will be closely watched by investors and financial professionals.

References:
[1] https://news.bloomberglaw.com/daily-tax-report-international/japans-govt-sees-sales-tax-cut-as-inappropriate-kato-says
[2] https://www.marketscreener.com/news/japan-finance-minister-aware-of-market-concerns-about-fiscal-health-ce7c5cded18cf124