Japan Chief Secretary Kihara says there has been no change to PM Takaichi government policies about attaining a strong economy and fiscal sustainability

Reaffirmations of this kind from a chief cabinet secretary are the standard instrument for walking back market anxiety after a new administration's early signals on spending or debt, and the pattern in Japan has been that such statements land when JGB supply concerns or fiscal expansion expectations have begun to price a steeper long end. The operative pairing here is growth alongside fiscal sustainability, a formulation past Japanese governments have used to keep both the stimulus narrative and the consolidation narrative alive, leaving the actual policy mix to be defined by the first supplementary budget and the annual budget process rather than by spokespeople. The relevant transmission is through super-long JGB yields and term premium, where Japanese fiscal credibility has historically been tested, and through the yen, where fiscal expansion expectations feed into rate differential assumptions. What tends to matter next is whether the reaffirmation is followed by concrete fiscal packages of a size that contradicts the sustainability language, and any comment from the finance ministry or coalition partners that reframes it. A statement of no change is the lowest-information class of government communication; it stabilises rather than reprices.