Finance Minister Katayama confirms 1 trillion yen reserve for 2026 budget amid rising import costs and global bond yield pressures.
Japan’s Finance Minister Satsuki Katayama announced plans to adopt flexible fiscal measures to protect household livelihoods as energy import costs rise due to Middle East supply disruptions. The government has allocated 1 trillion yen in reserves for the fiscal 2026 budget and sees no immediate need for additional spending.
Katayama will attend the G7 finance ministers meeting in France starting May 17, where discussions are expected to address global bond yield increases, including in the UK and US. Rising energy costs have heightened concerns over electricity prices and their impact on consumers.
The USD/JPY pair traded slightly higher, up 0.07% at 158.48, reflecting market reactions to Japan’s fiscal stance and broader monetary policy expectations.