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Japan's PM Takaichi Advocates Fiscal Spending Amid Rising Yields

12/17/2025

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Summary

Story summary

On December 17, 2025, Japanese Prime Minister Sanae Takaichi urged proactive fiscal spending to boost growth and tax revenues, not recklessly.
She spoke at a Keidanren panel as Japan's 10-year bond yield rose to an 18-year high, and the Bank of Japan is expected to hike rates.
Masazumi Wakatabe, former Bank of Japan Deputy Governor, dismissed fears of losing investor trust and urged raising the neutral rate through fiscal measures.

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Story summary

On December 17, 2025, Japanese Prime Minister Sanae Takaichi urged proactive fiscal spending to boost growth and tax revenues, not recklessly.
She spoke at a Keidanren panel as Japan's 10-year bond yield rose to an 18-year high, and the Bank of Japan is expected to hike rates.
Masazumi Wakatabe, former Bank of Japan Deputy Governor, dismissed fears of losing investor trust and urged raising the neutral rate through fiscal measures.