Finance Minister of Japan: Monetary policy has entered a new phase dominated by interest rates

On Monday, 28 July, the Finance Minister of Japan stated that Japan ' s monetary policy had shifted to a phase dominated by interest rate levels, with prices rising steadily in a healthy manner. Moreover, she did not believe that the public-private investment target of 370 trillion yen was too large. She added that she was not in a position to comment on the source of the food tax relief, other than what the Prime Minister had said yesterday. According to InvestingLive analyst Adam Button, Japan will have to make trade-offs in the face of the rise in the yen exchange rate and the rate of return on Japanese debt and inflation. It has been pointed out that Japan is facing “the biggest bubble in history” and that this view is valid. One of the factors underpinning the continuation of this situation is the belief that there will be no too radical action at the decision-making level; however, the performance of successive Japanese governments has made it difficult to inspire confidence in their fiscal discipline. Despite the robust growth achieved by the Japanese economy last year, it is not clear that there is any chance that Japan will emerge from its current predicament solely through economic growth。