TOKYO (Archyde.com) – Finance Minister Shunichi Suzuki, when asked why the Japanese yen is targeted by speculators at a post-cabinet press conference on the 21st, said, “Right now, we are in a tough confrontation with speculators through the market. We are in a situation,” he said, adding, “It is not appropriate to answer (the question).”
The remarks were made in consideration of the fact that the large-scale tax cuts that British Prime Minister Truss advocated as a signature policy caused market turmoil and forced him to resign. Regarding Japan’s financial situation, he also said, “It has changed so much since then, and it is not related to the current depreciation of the yen.”
Regarding fiscal discipline itself, he said, “Fiscal credibility, especially in the market, is related to the credibility of the country itself, and is also related to the evaluation of the country’s economy. We will take action,” he said.
Regarding trends in the foreign exchange market, he said, “Excessive fluctuations due to speculation cannot be tolerated.” He said that he would keep a close watch on trends with a high degree of urgency, and that “there is no change to the idea of taking appropriate measures against excessive fluctuations.” He also reaffirmed his understanding that a one-sided depreciation of the yen is undesirable.
He pointed out that the economic impact of the weaker yen has both positive and negative sides, and that it is important to ease the burden on companies and households through rising import prices. He also indicated the option of “promoting the revival of inbound tourism and the return of corporate investment to Japan to maximize the positive effects (of the weaker yen).”
The nationwide consumer price index in September rose to the 3% level for the first time in about 31 years, excluding the impact of the consumption tax hike. “It is important to take seamless measures,” he said.
Regarding monetary policy, he said, “The BOJ is independent and entrusted to it. I am not in a position to comment on specifics.”