Finance Minister Katayama Press Briefing, August 31, 2026
Overview
At the August 31, 2026 briefing, Finance Minister Katayama explained discussions on the global economy, growth, AI, and Ukraine at the G20 and G7; meetings with US and UK officials and IMF representatives; coordinated Japanese-US intervention and an orderly yen exchange rate; and Japan’s domestic fiscal management policy. She also reported that ADB Governor Kanda had been unanimously reelected. During the question-and-answer session, she said monetary policy was entrusted to the Bank of Japan and refrained from commenting on specific exchange-rate or interest-rate levels.
Key points
- The G20 and G7 discussed the global economy, growth, AI, and Ukraine, among other topics.
- The importance of an orderly yen exchange rate and continued coordinated efforts by Japan and the United States was confirmed.
- The policy of fully introducing income-linked benefits from fiscal 2029 was explained.
- Incumbent Governor Kanda was unanimously reelected as president of the Asian Development Bank.
Overview
At the briefing, Finance Minister Katayama explained the discussions at the G20 and G7, which she attended with Bank of Japan Governor Ueda, as well as the content of her meetings with US Treasury Secretary Bessent, UK Chancellor of the Exchequer Healey, and IMF Managing Director Georgieva. Supply chains and critical minerals were discussed at the G20, while the global economy, AI, and Ukraine were discussed at the G7.
Regarding domestic policy, she explained measures to raise potential growth, public-private investment in strategic fields over multiple fiscal years, a shift away from fiscal management dependent on supplementary budgets, and a stable reduction in the ratio of total outstanding debt to GDP.
Impact
The minister said that arbitrary export restrictions on critical minerals were harming the global economy and stated that they should be withdrawn.
She confirmed that an orderly yen exchange rate is essential to the stability of financial markets worldwide, including in the United States, and that continued coordinated efforts by Japan and the United States serve their shared objectives.
Details
At the G7, participants discussed the financial risks of frontier AI, responses to vulnerabilities, cybersecurity measures including defense in depth, and safeguards and guardrails during development and validation. They also exchanged views on support for Ukraine and sanctions against Russia.
During the question-and-answer session, she said that specific methods of monetary policy were entrusted to the Bank of Japan and refrained from specific comments on particular levels of exchange rates or financial markets, as well as media references to the Bank of Japan’s monetary policy. She explained that the significance of coordinated intervention based on international agreements and the existing areas of agreement remained unchanged.
Incumbent Governor Kanda was unanimously reelected in the election for president of the Asian Development Bank amid expressed expectations for inclusive and sustainable growth across the Asia-Pacific region.