Story perspectives

Japan PM Takaichi to Approve Fuel-Cost Budget, OECD Warns

5/15/2026

Summary

Takaichi Plans Budget

Prime Minister Sanae Takaichi will decide on a supplementary budget to offset fuel costs around the G7 summit in mid-June.
The budget would add a reserve to the existing 1 trillion-yen fund through March 2027, reaching several trillion yen.
A 10-trillion-yen package would likely raise long-term Japanese government bond yields.
OECD urged Japan to limit extra budgets to shocks, saying about 980 billion yen remained in the gasoline-subsidy pool and could be exhausted.

Summary

Katayama Rejects Budget

Finance Minister Satsuki Katayama said no extra budget is needed because ¥1 trillion of reserves remain untouched.
She said 30-year bond yields hit a 1999-high while corporate goods prices rose at a 12-year pace.
Observers think the Bank of Japan could raise rates next month if the economy holds.
The yen moved from 155.04 per dollar on May 6 to 158.49 on Friday, prompting G7 finance chiefs to discuss issues in France.

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Takaichi Plans Budget

Prime Minister Sanae Takaichi will decide on a supplementary budget to offset fuel costs around the G7 summit in mid-June.
The budget would add a reserve to the existing 1 trillion-yen fund through March 2027, reaching several trillion yen.
A 10-trillion-yen package would likely raise long-term Japanese government bond yields.
OECD urged Japan to limit extra budgets to shocks, saying about 980 billion yen remained in the gasoline-subsidy pool and could be exhausted.

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