Japan’s Finance Minister Mitsuki Katayama: Enhancing economic competitiveness helps support the credibility of the yen, expectations for a rate hike in September are rising

(1) Japanese Finance Minister Katayama Mayumi stated that enhancing long-term competitiveness and potential economic growth rate by promoting investment and strengthening domestic supply capacity will help support the credibility of the yen. Although economic and fiscal policies are not aimed at controlling exchange rates, boosting international competitiveness will help Japan win in global competition, and the credibility of the yen will naturally be maintained and enhanced.(2) Katayama Mayumi made these remarks at a time when, despite joint intervention measures by the United States and Japan, the yen remains weak, and the market is highly focused on the direction of central bank policy.(3) As the weakness of the yen poses a significant risk to domestic price stability, the market increasingly expects that the Bank of Japan will raise interest rates at its next meeting in September.