Japan PM to retain Kiuchi as economy minister in cabinet reshuffle, Yomiuri reports
- Trade minister Ryosei Akazawa is also likely to be re-appointed, the paper said without citing sources
TOKYO: Japanese Prime Minister Sanae Takaichi is likely to keep Minoru Kiuchi as minister in charge of economic revitalisation in a cabinet reshuffle scheduled on Thursday, the Yomiuri newspaper reported on Wednesday.
Trade minister Ryosei Akazawa is also likely to be re-appointed, the paper said without citing sources.
The prime minister’s office was not immediately available to comment.
Markets have been focusing on whether Kiuchi, known as an advocate of expansionary fiscal and monetary policy, will retain his post for clues on whether the recent bond selloff could prod Takaichi to water down her big spending plans.
Concerns about the risk of additional debt issuance to fund Takaichi’s expansionary fiscal plans sent the yield on the benchmark 10-year Japanese government bond to a three-decade high of 3.025% on Tuesday.
“There were views in the bond market that if Kiuchi were to be replaced by someone else, it would be seen as a factor to buy JGBs.
We could see a rollback of such speculation today,“ said Keisuke Tsuruta, a senior bond strategist at Mitsubishi UFJ Morgan Stanley Securities.
As minister overseeing the Cabinet Office, Kiuchi has the right to attend the Bank of Japan’s policy-setting meetings as one of the two government representatives.
The finance ministry has the right to send the other government representative.
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