Japan: Kiuchi rules out reflationary policy, warns against excessive FX volatility

Source Fxstreet
  • Japan's Economy Minister Kiuchi rules out reflationary policy under the Takaichi administration.
  • Kiuchi stresses that monetary policy decisions should be left to the Bank of Japan.
  • The minister warns against excessive short-term currency volatility but declines to comment on exchange rates.

Japan's Economy Minister Minoru Kiuchi said on Thursday that the Takaichi administration is not pursuing a reflationary policy, stressing that proactive fiscal measures should not lead to unnecessary public spending.

Regarding monetary policy, Kiuchi reaffirmed the independence of the Bank of Japan (BoJ), noting that specific policy decisions should be left to the central bank as it seeks to achieve its 2% inflation target.

On foreign exchange, the minister declined to comment on specific currency movements but emphasized that excessive short-term volatility should be avoided, while acknowledging that exchange rates are determined by various market factors.

Key takeaways

Proactive fiscal policy not meant to expand unnecessary expenditures.

Reflationary policy is not what's needed now.

If someone is calling for reflationary policy, that's different from our policy.

Takaichi administration is not pursuing reflationary policy.

Won't comment on long-term interest rates, but the government understands boj is conducting monetary policy to achieve 2% target.

Specific monetary policy should be left to boj.

Won't comment on forex.

Generally speaking, forex is determined in markets by various factors.

Should avoid short-term wild swings in forex.

Market reaction

The market shows little reaction to Kiuchi's remarks, with USD/JPY down 0.30% on Thursday, trading around 157.85 at the time of writing.

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Australian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.57% -0.53% -0.32% -0.27% 0.64% -0.34% -0.63%
EUR 0.57% 0.03% 0.25% 0.27% 1.24% 0.21% -0.06%
GBP 0.53% -0.03% 0.21% 0.24% 1.17% 0.18% -0.11%
JPY 0.32% -0.25% -0.21% 0.02% 0.97% -0.06% -0.33%
CAD 0.27% -0.27% -0.24% -0.02% 0.92% -0.07% -0.35%
AUD -0.64% -1.24% -1.17% -0.97% -0.92% -0.98% -1.27%
NZD 0.34% -0.21% -0.18% 0.06% 0.07% 0.98% -0.30%
CHF 0.63% 0.06% 0.11% 0.33% 0.35% 1.27% 0.30%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Strong profits, falling shares: bank earnings day one meets a memory-chip rout — with CPI and ASML aheadGoldman Sachs blew past estimates (EPS $17.01 vs $13.09 expected, profit +33%) while JPMorgan missed ($5.75 vs $5.93) and Wells Fargo fell 3% — yet the S&P 500 finished flat at 7,805.45, pinned below its record close as a memory-chip rout (SOX −2.67%, Micron under $1,000) kept the pressure on. Tonight brings the week's decider: US September CPI at 8:30 ET, then Bank of America, Morgan Stanley, BlackRock and ASML before the open. Here are the levels, both cases, and the watch list.
Author  Irene Q.
Oct 14, Wed
Goldman Sachs blew past estimates (EPS $17.01 vs $13.09 expected, profit +33%) while JPMorgan missed ($5.75 vs $5.93) and Wells Fargo fell 3% — yet the S&P 500 finished flat at 7,805.45, pinned below its record close as a memory-chip rout (SOX −2.67%, Micron under $1,000) kept the pressure on. Tonight brings the week's decider: US September CPI at 8:30 ET, then Bank of America, Morgan Stanley, BlackRock and ASML before the open. Here are the levels, both cases, and the watch list.
placeholder
US September CPI recap: inflation hits 3.7% as core runs hot — is an October Fed hike back on the table?September CPI landed hot: headline 3.7% y/y, core 2.6% y/y and 0.3% m/m. October hike odds jumped from ~22% to ~37% — yet the dollar faded to 101.74, gold closed higher and the S&P 500 fell 1.11%. Here is the full repricing, the levels and what to watch next.
Author  Irene Q.
Oct 15, Thu
September CPI landed hot: headline 3.7% y/y, core 2.6% y/y and 0.3% m/m. October hike odds jumped from ~22% to ~37% — yet the dollar faded to 101.74, gold closed higher and the S&P 500 fell 1.11%. Here is the full repricing, the levels and what to watch next.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 15, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 15, 2026. Read on for the details.
Author  Mitrade
23 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 15, 2026. Read on for the details.
placeholder
Today’s Market Recap: U.S. Stocks Rebound, Dow Jumps Over 1%, Micron Gains 1.87%, CoreWeave Rallies Nearly 6%Tracking the Market TrendTradingKey - On October 15, Eastern Time, U.S. September PPI data posted its largest monthly and annual gains since 2022, prompting investors to shift from AI tech stocks to d
Author  TradingKey
Yesterday 01: 20
Tracking the Market TrendTradingKey - On October 15, Eastern Time, U.S. September PPI data posted its largest monthly and annual gains since 2022, prompting investors to shift from AI tech stocks to d
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 16, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 16, 2026. Read on for the details.
Author  Mitrade
23 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 16, 2026. Read on for the details.
Related Instrument
goTop
quote