04.11.202505:44:42UTC+00Japan Still ‘Half Way’ to Sustainable Inflation: PM Takaichi

Japanese Prime Minister Sanae Takaichi expressed on Tuesday that Japan has not yet reached the point of sustainable inflation driven by wage growth, indicating caution regarding additional interest rate hikes. Despite consumer inflation nearing 3% due to escalating food prices, she informed parliament that the nation is only "halfway" to achieving stable price increases supported by stronger wages. "I hope the Bank of Japan implements appropriate monetary policies to sustainably and stably achieve its 2% inflation target," Takaichi stated. Her remarks were in response to opposition leader Yoshihiko Noda's cautionary note that resisting rate hikes could weaken the yen and elevate import costs. Takaichi also emphasized her administration's intention to deploy fiscal spending strategically to enhance household income, boost consumer confidence, and fortify the economy. The Bank of Japan ended its decade-long stimulus campaign last year, raising short-term interest rates to 0.5% in January, as Japan appeared to be nearing its inflation target.