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Japan Economy Minister signals end to need for loose monetary policy
Tokyo's inflation accelerated sharply in September, with the headline consumer price index (CPI) rising to 2.7% year-on-year, up from 1.9% in August. Core-core inflation, which excludes fresh food and energy, surged to 3.0% from 2.0%. Services inflation also saw an increase, rising from 1.4% to 2.3%.
In response to these economic indicators, Economy Minister Minoru Kiuchi stated that Japan has exited its deflationary period and no longer requires excessively loose monetary policy. Kiuchi noted that Prime Minister Sanae Takaichi’s approach differs from the reflationist stimulus policies of the Abenomics era. He emphasized that while the government has views on policy, final monetary decisions remain the jurisdiction of the Bank of Japan.
Finance Minister Satsuki Katayama also signaled a departure from previous trends, informing US Treasury Secretary Scott Bessent that the Prime Minister does not follow reflationist policies. These developments come as market analysts monitor the Bank of Japan for potential future interest rate hikes following the recent September increase.
Entities
Bank of Japan · Japan · Minoru Kiuchi · SOMPO Institute Plus · Sanae Takaichi · Satsuki Katayama · Scott Bessent · Tokyo
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Services inflation in Tokyo rose from 1.4% to 2.3% year-on-year in September. www.actionforex.com
- [● 2 SOURCES] Economy Minister Kiuchi clarified that while he has views on policy, monetary decisions remain the jurisdiction of the Bank of Japan. www.ekoturk.com · www.businesstimes.com.sg
- [● 2 SOURCES] Finance Minister Satsuki Katayama informed US Treasury Secretary Scott Bessent that Prime Minister Sanae Takaichi does not follow reflationist policies. www.ekoturk.com · www.businesstimes.com.sg
- [● 2 SOURCES] Economy Minister Minoru Kiuchi stated that Japan no longer requires excessively loose monetary policy because the country has exited its deflationary period. www.ekoturk.com · www.businesstimes.com.sg
- [● 2 SOURCES] Core-core inflation in Tokyo, which excludes fresh food and energy, increased from 2.0% to 3.0% year-on-year. www.actionforex.com · investinglive.com
- [● 3 SOURCES] Tokyo's headline consumer price index (CPI) rose to 2.7% year-on-year in September, up from 1.9% in August. www.actionforex.com · investinglive.com · www.finanzen.at