Japan’s Kiuchi calls for early parliamentary approval of fiscal budget 2026

Japan's economy minister, Minoru Kiuchi, said on Tuesday that the government needs to aim for early parliamentary passage of fiscal budget 2026.

Key quotes

Takaichi administration's responsible, proactive fiscal policy takes into account fiscal discipline.
Need to aim for early parliamentary passage of fiscal budget 2026.
It does not mean reckless spending.
Cannot say that fiscal policy alone is what determines market developments.
Forex rates are determined by various factors.
Long-term interest rates are also determined by various factors in the market.
Need to carefully see various factors including sustainability of wage growth to make sure Japan does not return to deflation again.
But now not in a state to declare exit from deflation just yet.

Market reaction

As of writing, the USD/JPY pair is up 0.45% on the day at 158.90.