Japan PM Takaichi: No Fiscal Policy That Fuels Excessive Inflation

Takaichi's comments matter less as new policy than as a signal of coordination between the government and the Bank of Japan: fiscal restraint paired with an explicit expectation that the central bank delivers on its 2% target. For markets, the framing suggests fiscal spending will not be treated as a free hand, which keeps the policy mix in focus for yen and JGB watchers. The open question is whether this stated discipline holds as spending pressures build, and how the BOJ reads the government's public expectation when it next moves on policy.