Japan Financial Services Agency publishes Finance Minister Katayama remarks reaffirming readiness for foreign exchange intervention as yen weakens

The Japan Financial Services Agency published a summary of a post-Cabinet press conference in which Finance Minister Katayama addressed yen depreciation, Japan–United States coordination on exchange rates and market concerns linked to a potential dissolution of the House of Representatives. On foreign exchange, Katayama said Japan and US Treasury Secretary Bessent shared the view that recent moves not reflecting fundamentals had gone too far, and reiterated that the Japan–US agreement includes intervention and that Japan would take decisive measures as needed. He rejected the suggestion that the US side pressed for a monetary-policy response in their meeting, and indicated that the Japan–US Finance Ministers’ Joint Statement from last fall left the question of cooperation open, meaning no options would be ruled out. On fiscal concerns raised by higher interest rates and yen weakness following dissolution reports, Katayama argued that “responsible and active” fiscal policy is not expansionary financing, pointing to a reduced reliance on public debt and an estimated general government deficit described as the smallest among the G7. He also cited ongoing implementation of the supplementary budget and said the government would seek to minimise any negative impact on people’s lives if election timing complicates passage of budget and tax legislation.