Growth Strategy Minister Jouchi and others emphasize the end of Abenomics-style reflationary policies

Regarding the ``reflationary policy,'' which aims at monetary easing and fiscal spending, Growth Strategy Minister Minoru Jouchi expressed his recognition at a post-cabinet press conference on the 25th that ``the Abenomics-style reflationary policy is over.'' Finance Minister Satsuki Katayama also emphasized on a TV program on the 23rd that ``the prime minister is not a reflationist.'' On the 1st of this month, U.S. Treasury Secretary Bessent issued an unprecedented order that Japan should end its reflationary policy, and ministers in Sanae Takaichi's cabinet have made a series of statements that negate the reflationary trend.

On the 18th, Shirouchi said on a program on Shizuoka Asahi TV that ``reflation policy is like a dead word'' and ``I haven't heard of it in the past two or three years.'' When asked about the purpose at a press conference on the 25th, he explained, ``The phase of the reflation policy in the Abenomics sense of steadily easing monetary policy and taking flexible fiscal measures is over.''

When Mr. Takauchi's cabinet was first established in October last year, he advocated a ``high-pressure economy'' as his basic policy. This means using monetary and fiscal policies to maintain a state in which demand exceeds supply and raise the growth rate. However, he explained at a press conference this month that he "hasn't used this expression recently."

Katayama also revealed on the same program on the 23rd that the prime minister told him, ``I'm not a reflationist, so just say that.'' Since Mr. Takaichi has shown a positive attitude towards fiscal stimulus and monetary easing, there is a view in the financial market that there will be a strong preference for reflation even after taking office.