Japan's Katayama: Stresses the need to stabilize weak Yen

Japan's Finance Minister Satsuki Katayama signals that the government will allow the Bank of Japan (BoJ) to work independently. Katayama denies commenting on the outlook of forex rates and the monetary policy.

Additional comments

I will aim for both economic growth, financial consolidation.

Will pursue fiscal and economic policies while balancing with fiscal prudence.

Too early to talk about the size of the supplementary budget right now.

It's up to the BoJ on the specifics of monetary policy.

We need the BoJ and government cooperation to have effective economic policies.

No comment on BoJ interest rate.

Cannot say Japan has exited deflation fully.

Net debt-to-GDP ratio is enough as a key fiscal gauge.

Cutting sales tax shouldn't be handled lightly.

I cannot comment on forex rates.

Generally speaking, a weak yen boosts the cost of food, so we need to be quick to launch measures to cushion the impact.

"Takaichi trade" has calmed down somewhat.

Market reaction

The comments from Japan's Katayama have not impacted the Japanese Yen (JPY) significantly. At the time of writing, the USD/JPY trades 0.1% down to near 151.80.