Japan to convene extraordinary Diet session focusing on tax cuts

Japan is set to convene its 222nd extraordinary Diet session on the 5th, marking the first session following the formation of the second Takaichi Cabinet. The primary legislative focus will be the passage of bills related to reducing consumption taxes on food items to combat rising costs. Additionally, the ruling party aims to address the reduction of the number of seats in the House of Representatives, a move facing opposition from minority parties.

Finance Minister Satsuki Katayama addressed economic concerns in a recent interview, noting that the government is working toward a unified stance on monetary policy and the yen's depreciation. Katayama highlighted that Prime Minister Takaichi and U.S. President Trump have reached a mutual understanding that current exchange rates do not reflect economic fundamentals.

Regarding the weak yen, Katayama emphasized that the government will not hesitate to take action, such as coordinated interventions, to counter excessive volatility or disorderly market movements driven by speculation. The government also plans to implement measures early next week to prevent retailers from using inflation as a pretext for price hikes following any consumption tax adjustments.