Japan PM Open to Bonds for Tax Cut
Japanese Prime Minister Sanae Takaichi said she would not rule out issuing bonds to fund a planned two-year consumption tax cut starting next April. The government aims to lower the debt-to-GDP ratio while controlling annual bond issuance.
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Japan Prime Minister Sanae Takaichi said on Monday morning she would not rule out issuing bonds to fund a two-year reduction in the consumption tax starting in April 2027. The move comes as policymakers weigh fiscal expansion against the need to maintain investor confidence in USD/JPY. Investors are closely monitoring how the government plans to finance the tax cut without destabilizing the national debt ratio.
