Media reports that say Prime Minister Sanae Takaichi¡¯s administration is attempting to keep interest rates low and weaken fiscal improvement efforts aren¡¯t accurate at all, according to economic policy minister?Minoru Kiuchi.
¡°There¡¯s absolutely no truth to reports suggesting that the government is encouraging low interest rates as part of its fiscal expansion policy,¡± Kiuchi said Tuesday at a regular news briefing in Tokyo. ¡°If our intentions haven¡¯t been accurately conveyed, we intend to make even greater efforts to promote understanding.¡±
Kiuchi¡¯s remarks come as financial markets watch closely for clues about Takaichi¡¯s plans to implement an economic strategy that calls for a massive increase in investment without worsening the nation¡¯s already heavy debt burden. While the central bank has already raised interest rates twice since Takaichi became the nation¡¯s prime minister last autumn, investors are still trying to gauge if she is trying to slow down the Bank of Japan¡¯s efforts to raise borrowing costs.
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