Japan’s Prime Minister Sanae Takaichi said on Friday that a sustained economic expansion would naturally bring moderate inflation and gradual increases in long-term government bond yields.
In a post on X, Takaichi framed the current uptick in consumer prices and bond yields as indicative of stronger domestic demand and corporate activity. She emphasized that the government would pursue policies to ensure wages rise faster than inflation, targeting real income growth through expanded domestic investment.
The administration also highlighted the importance of maintaining market confidence in Japan’s fiscal sustainability amid the shifting macroeconomic backdrop. The remarks were made during a period of rising price pressures and bond market volatility, with the 10-year Japanese government bond yield climbing to its highest levels in months.
Takaichi’s comments follow a July 27 press conference in Tokyo, where she outlined the government’s broader economic agenda. The prime minister did not specify exact targets for inflation or wage growth, but reiterated the need for balanced policies that support growth without compromising fiscal discipline.
