Prime Minister Sanae Takaichi said during a representative question session at a House of Representatives plenary meeting on the afternoon of the 8th that Japan's economy "is not in deflation in the sense of prices continuing to fall," and that it "is not in a phase requiring reflation policy." She was responding to Yuichiro Tamaki, leader of the Democratic Party for the People. The prime minister stated that she will respect the Bank of Japan on monetary policy, and indicated her recognition that the growth strategy through more than 370 trillion yen in public-private investment, a flagship policy of the Takaichi cabinet, is not a reflation policy, while adding that the public-private ratio for such investment has not been decided. Regarding the review of valuation of unlisted shares, which has raised concerns about increased burdens on some companies, she said, "At this point, the direction has not been decided at all," and "We will proceed with consideration from a blank slate."
PM Takaichi says Japan is not in deflation and not in a phase requiring reflation policy, signaling less pressure for ultra-loose BOJ policy and supporting the yen.
