Expert: Tokyo inflation to slow slightly
As Japanese consumers face the G7's highest inflation rates, an economist expects the Tokyo Consumer Price Index for June to show increases are slowing very slightly. He also sees prices continuing to rise at a high pace this year.
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NHK
an hour ago
- NHK
Japan to review JGB issuance plan amid super-long bond slump
Japan's Finance Ministry has called for reducing the issuance of super-long government bonds, amid slumping demand for those with maturities of over 10 years. It's rare for the ministry to review the bond issuance plan midway in a fiscal year. The ministry presented the proposal at a closed-door meeting with financial institutions that take part in auctions on Friday. The plan calls for trimming issuance of bonds, including maturities of 20 to 40 years, starting July. That means a reduction of 3.6 trillion yen, or around 24.7 billion dollars. The total value of bond issuance for this fiscal year would be kept unchanged at 176 trillion yen, or about 1.2 trillion dollars. The ministry would replace the bonds with short-term ones and more bonds for individual investors. The ministry makes an issuance plan for government bonds for every fiscal year and conducts auctions as planned. But the auction held in May for 20-year bonds saw the weakest demand since 2012. The ministry said it will work to ensure stable sales of JGBs by revising its issuance plan.
Japan Times
3 hours ago
- Japan Times
¥1.9 trillion over five years eyed for 2011 tsunami reconstruction
Japan adopted a new basic policy on Friday for reconstruction after the March 2011 earthquake and tsunami, expecting projects worth ¥1.9 trillion for the next five years from fiscal 2026. The amount tops ¥1.6 trillion for the five years through fiscal 2025, which ends in March. Under the basic policy, the government will tackle such issues as the final disposal of soil removed during radiation decontamination after the nuclear accident at Tokyo Electric Power Company Holdings' Fukushima No. 1 power plant. The government will also promote the return of evacuees to their homes in areas affected by the radiation from the nuclear accident. "With a strong determination to resolve problems for reconstruction within the next five years, all the cabinet members will accelerate reconstruction efforts further, staying considerate to those in affected areas," Prime Minister Shigeru Ishiba told a meeting of the government's council for reconstruction from the disaster. The basic policy calls for studying the idea of allowing forest management and some other activities in areas where entry is heavily restricted due to the radiation from the nuclear accident. The government will also promote the use of soil collected during decontamination work in public works projects and continue to financially support disaster-affected municipalities with special grants. Of the ¥1.9 trillion projected for the next five years, ¥1.6 trillion will go to reconstruction efforts in Fukushima Prefecture, devastated by the Tepco accident on top of the quake and tsunami. The tsunami-hit prefectures of Iwate and Miyagi will each secure some ¥100 billion.
Japan Times
4 hours ago
- Japan Times
Japan hopes good-faith negotiations will buy it some time in U.S. tariff talks
Negotiating in good faith in tariff talks with the United States could buy Japan some time and delay the implementation of much higher rates, chief tariff negotiator Ryosei Akazawa said. U.S. Treasury Secretary Scott Bessent said that as long as countries are engaged in "sincere negotiations, there's room for extensions and other possibilities,' Akazawa told reporters after a ruling Liberal Democratic Party meeting Friday. 'We, for our part, are negotiating in good faith. So we understand that things will likely proceed on that basis,' he added. Japan is subject to 25% tariffs on cars and car parts, 50% on steel and aluminum as well as a 10% baseline tariff that could rise back to 24% if no deal is struck by July 9 — the day when a 90-day grace period expires. Akazawa said at a news conference earlier in the day that while Japan sees July 9 as a critical juncture, it does not view the date as a hard deadline between the two countries. 'As the prime minister has said, there are numerous national interests — starting with the automotive sector — that Japan must protect,' Akazawa said. 'For each of these interests, we intend to negotiate in a way that ensures they are not compromised, and aim to reach agreements that will benefit both countries.' His remarks came after Prime Minister Shigeru Ishiba and U.S. President Donald Trump failed to reach an agreement on tariffs or a breakthrough of any kind when they met Monday in Canada, despite repeated suggestions of progress in recent talks over the past few weeks. 'We have been exploring the possibility of reaching an agreement until the very last moment. However, there are still points where our perceptions do not align, and therefore, we have not yet reached a comprehensive agreement as a whole,' Ishiba said after the meeting. Akazawa has so far made six trips to Washington since tariff negotiations started in April, four of them in as many weeks in the run-up to the Trump-Ishiba meeting during the Group of Seven gathering earlier this week. Akazawa said he has built a good rapport with his American counterparts, including Bessent and Commerce Secretary Howard Lutnick, which he said could be a positive factor. 'Of course, each of us is responsible for protecting our respective national interests, so even if there's trust or friendliness, negotiations don't come together easily,' he said in reply to a question from The Japan Times. 'That said, as people engage in discussions, mutual understanding of each other's character and personality deepens, and being able to negotiate with someone you regard as trustworthy — I believe that's a very positive thing.' Akazawa also noted Nippon Steel's successful acquisition of U.S. Steel after an 18-month uphill battle, saying the deal carries enormous significance and is a job well done. 'Speaking as a fellow negotiator engaged in similar talks — I truly want to say, job well done. Reaching an agreement undoubtedly involved tremendous effort, and I sincerely respect that,' he said. 'I believe this is a highly meaningful and significant agreement, not only for the economic relationship but also for the future development of Japan-U.S. ties as a whole.'
