FX.co ★ Incoming Japan PM Takaichi Plans Measures to Ease Living Costs

Sanae Takaichi, the chief of Japan’s ruling party, announced on Thursday her intention to promptly implement strategies to mitigate the economic effects of surging living costs if she is elected prime minister. She asserted the necessity of legislative action to reduce the gasoline tax and the compilation of a supplementary budget in parliament. "Without such measures, citizens will continue to bear the burden of increasing living expenses, which will negatively impact consumption, diminish corporate profits, and adversely affect the economy," Takaichi stated. She highlighted the importance of synchronizing the Bank of Japan's monetary policy with governmental objectives, noting that the recent inflationary trends are primarily attributed to elevated raw material prices rather than robust demand. Regarding the yen, Takaichi remarked, "We must avoid provoking significant yen depreciation. However, it is worth noting that a weaker yen presents both advantages and disadvantages: it supports manufacturers contending with U.S. tariffs, but it also increases import costs for consumers."