Katayama’s Post-Cabinet Press Conference Summary, October 16, 2026
Overview
Finance Minister Katayama said that discussions at the G20 and G7 Finance Ministers and Central Bank Governors meetings covered global economic and financial challenges, and that she conveyed Japan’s views. She also referred to the extension of the currency swap with South Korea and an agreement in principle to upgrade bilateral talks with India. On foreign exchange, she said the market would be monitored with a strong sense of urgency. She stated that any supplementary budget would be limited to highly urgent measures, while ongoing measures would be provided for in the initial budget.
Key points
- The meetings covered a broad range of economic and financial challenges, and Japan’s views were conveyed.
- The currency swap with South Korea was extended, and there was near agreement in principle to upgrade bilateral talks with India.
- The minister said supplementary budgets would be limited to highly urgent measures, while ongoing measures would be provided for in the initial budget.
Overview
Finance Minister Katayama said that the G20 and G7 Finance Ministers and Central Bank Governors meetings in Bangkok covered a broad range of global economic and financial issues. She said it was significant that nearly all participants could attend in person at a time of high volatility and geopolitical events.
The appointment of a new chair of the World Bank-IMF Joint Development Committee was announced. Minister Katayama said she intended to carry out the role diligently. She said the appointment would give her access to more information and that Japan’s presence had also increased.
Impact
The minister said that becoming the new chair of the Joint Development Committee gave her access to more information and increased Japan’s presence.
Details
The minister conveyed Japan’s views on economic resilience, including diversifying supply chains for critical minerals, responding to risks posed by AI, and policy measures to correct global imbalances. Regarding AI risks, tabletop exercises are to be conducted in the future, including at the G7.
Regarding the foreign exchange commitment, she repeatedly said that financial market developments must be monitored with a strong sense of urgency. She declined to comment on the details of the discussions.
She held talks with the finance ministers of South Korea, India, Thailand, and Indonesia. Indonesia also sought to upgrade bilateral talks between finance ministers. Thailand’s finance minister is scheduled to visit Japan in November leading an investment committee, and the minister said she would accommodate the visit as much as possible.
To improve predictability for businesses and local governments, the minister set out a principle of moving away from fiscal management that relies on supplementary budgets based on the large-scale economic packages used in the past. She said it was too early to say whether a supplementary budget was needed at this point, and that if one became necessary from this autumn onward, it would be limited to measures that were truly highly urgent.