Japan Finance Minister Says Economy Near Wage-Driven Inflation, No Divergence with BOJ

English summary

Japanese Finance Minister Satsuki Katayama stated that the economy is on the verge of transitioning to sustained inflation driven by wage growth, emphasizing no divergence between the government and the Bank of Japan (BOJ). Current price rises are mainly driven by import costs, with tax cuts aimed at easing living cost pressures. This stance may support the yen, but markets remain focused on potential voting splits at the December BOJ meeting and US-Japan yield differentials.