Japan’s Takaichi pushes fiscal shift, plans food tax suspension
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Japan Prime Minister Sanae Takaichi said on Monday that her government is pushing for a shift toward a more proactive fiscal stance, including a temporary suspension of the sales tax on food. She also emphasized the need to boost investment and signaled plans for diplomatic engagement with the United States, according to Reuters. Meanwhile, Takaichi stressed that the administration would avoid debt issuance to finance the proposed tax measures and instead seek alternative revenue sources. Key quotes from Takaichi Will examine at meeting among ruling, opposition parties schedule and funding of plan to suspend by two years sales tax on food. Will not resort to debt issuance to fund suspension of sales tax on food. Will seek achievement of food sales tax suspension at earliest date possible by securing revenues such as through non-tax revenues, reviews to subsidies. Hope to visit U.S., hold talks with US President Trump next month. Must pull Japan out of excessively tight fiscal policy, lack of investment. Govt must take bold steps to promote public-private investment on crisis management, state-of-art technology. Proactive fiscal policy will be key component of Takaichi administration’s policy transition. Market reaction At the time of writing, Japanese Yen showed limited immediate reaction, with investors assessing the feasibility and funding details of the proposed fiscal measures. The USD/JPY pair is down 0.41% on the day at 156.43. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened…
Filed under: News - @ February 9, 2026 10:28 am