The Japan Financial Services Agency published an overview of Finance Minister Katayama's press conference after the G7 Finance Ministers and Central Bank Governors Meeting, in which he gave his own account of the discussions under the Chatham House rule. He said the meeting treated the Middle East situation as the main source of current inflation, exchange rate and government bond market volatility, and agreed on the need to secure free and safe navigation in the Strait of Hormuz, monitor markets closely, and address food and fertilizer supply chain risks. He also said ministers and governors advanced work on critical minerals, frontier AI related cyber risk, financial crime and global imbalances. On critical minerals, Katayama said the G7 is moving closer to coordinated action in response to China's export controls and low priced supply backed by subsidies, with Japan planning to establish RISE+ within the World Bank's Japan Trust Fund and to support project formation through multilateral development banks. On frontier AI, he said experts agreed to share cyber risk countermeasures quickly and prepare more specific measures for the Evian Summit. He also called for the G7 to lead FATF discussions on terrorist financing and crypto assets, including thefts linked to North Korea, and said debate on global imbalances centred on the need for objective IMF and OECD analysis and on action involving China. He added that there was no discussion of coordinated G7 action on bond market stress or foreign exchange intervention, with countries expected to respond according to their own circumstances. A one month process involving experts and deputies will now develop proposals ahead of the Evian Summit, where Katayama said the aim is to turn these discussions into more concrete measures and language for leaders.

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