Japan PM Sanae Takaichi Asked BOJ To Buy Bonds If Needed

Japan’s Prime Minister Sanae Takaichi reportedly urged Bank of Japan (BOJ) Governor Kazuo Ueda during a May meeting to purchase Japanese government bonds if needed to stabilize markets. Takaichi sought bond purchases to align monetary policy with her government’s economic agenda. The BOJ raised its policy rate from 0.75% to 1% in June, its highest level since 1995, and stopped reducing bond purchases from April 2027. Government spending plans, including crisis preparedness and defense, raised concerns about rising borrowing costs. Japan’s debt-to-GDP ratio stands at 248.7%, the highest globally. The U.S. Treasury and Japan’s Ministry of Finance coordinated yen-buying operations to address currency volatility, with the yen weakening to its lowest level in nearly four decades at 157.42 per U.S. dollar. Treasury Secretary Scott Bessent emphasized Japan’s efforts to address the yen’s undervaluation through policy measures.