Japan vows steps against speculative moves as yen spikes amid election push

1 min read
Source: Reuters
Japan vows steps against speculative moves as yen spikes amid election push
Photo: Reuters
TL;DR

PM Sanae Takaichi pledged to take necessary steps against speculative or abnormal market moves after a yen spike and bond rout tied to expansionary fiscal policy and the BOJ’s slow rate hikes, while promising a two-year suspension of the 8% food sales tax; opposition parties floated funding a tax cut by tapping the BOJ’s ETF holdings or currency intervention reserves, prompting concerns about market impact and central-bank independence as the BOJ signals readiness for emergency bond-buying if yields rise.

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