Japan Government Defends Economic Blueprint as Political Stalemate Persists

Japan’s government rejected market speculation that it is pressuring the Bank of Japan to keep interest rates low. Economy Minister Minoru Kiuchi said the draft economic blueprint simply calls for monetary policy to be handled by the BOJ and maintains the commitment to fiscal discipline, despite rising 10‑year JGB yields hitting a 30‑year high of 2.83%.

At the same time, Prime Minister Sanae Takaichi and Japan Innovation Party leader Hirofumi Yoshimura met amid a stalled Diet session. The two parties remain at odds over proposals to cut the number of lawmakers and introduce a secondary capital bill, leaving parliamentary deliberations suspended and highlighting ongoing political friction within the ruling bloc.