Japan's long-term debt interest rate broke by 3 per cent

On Tuesday, 1 September, Prime Minister Takahumi of Japan, responding to the question of a 3 per cent breakthrough for the first time in 30 years at long-term interest rates, stated that the financial functioning of the economy “must be properly judged in due course on the basis of an assessment and analysis of economic conditions, including interest rate movements”. In response to the interest rate trend, she simply stated that “if specific comments were made, they could have unintended effects and would not be commented upon”. She explained that the level of interest rates was determined by the market, influenced by various factors, including the policies of other countries. When asked how to ensure market confidence, she stressed that “we will respond appropriately to the necessary fiscal needs and achieve a real balance between a strong economy and fiscal sustainability”. She indicated that budget reform would be vigorously pursued in line with the Basic Guidelines for Economic and Financial Operations and Reform (the “Strategy of the Ocedents”) established in July. She called for regular policy measures not to rely on large-scale supplementary budgets, but to be accommodated through the initial budget. Kim Xian