Katayama Briefs Reporters After Cabinet Meeting on September 25, 2026
Overview
Finance Minister Katayama viewed the Bank of Japan’s policy rate increase as a measure toward achieving the 2% price stability target sustainably and stably, and expressed expectations for coordination with the government and appropriate monetary policy management. She declined to comment specifically on recent exchange rate and interest rate movements or the facts surrounding rate checks. She explained that at the Japan-U.S. summit, President Trump voiced concern about yen depreciation, while Prime Minister Takaichi said in general terms that the yen’s undervaluation was a problem. She did not disclose whether specific methods, including coordinated intervention, were discussed at the summit, and said she would continue close exchanges with Treasury Secretary Bessent on matters including foreign exchange.
Key points
- She viewed the rate increase as a measure toward achieving the 2% price stability target sustainably and stably.
- At the Japan-U.S. summit, President Trump voiced concern about yen depreciation, and Prime Minister Takaichi said the yen’s undervaluation was a problem.
- She did not comment specifically on recent exchange rate and interest rate movements or the facts surrounding rate checks.
Overview
Finance Minister and Minister of State for Special Missions Katayama answered questions on monetary policy, foreign exchange, and interest rates at a press conference after a Cabinet meeting.
At a press conference after the meeting, the BOJ governor explained that the policy phase had changed from the perspective of stabilizing underlying inflation at around 2%, and the minister said she was aware of that explanation.
Details
The minister refrained from commenting on individual policies, saying that specific monetary policy methods should be left to the BOJ. She viewed the increase as having been made in light of economic, price, and financial conditions, and expressed expectations that the BOJ would coordinate closely with the government and conduct policy appropriately.
She refrained from specifically commenting on recent market movements, including foreign exchange, or on rate checks. She said interest rates, including long-term rates, are affected by various factors.
According to the minister, at the Japan-U.S. summit, President Trump voiced concern about yen depreciation, while Prime Minister Takaichi said in general terms that the yen’s undervaluation was a problem. She explained that the prime minister was also aware of this and that it was not a particular surprise. The minister and Treasury Secretary Bessent will continue close exchanges on matters including foreign exchange.
The minister discussed the coordinated intervention on July 31, the first in 28 years, and the joint statement announced by the countries on August 3, and said these were also confirmed at the summit. She said specific methods, including coordinated intervention, were matters for discussion between the Japanese and U.S. finance authorities, and did not disclose whether long-term interest rates or other topics came up at the summit.