Japanese Economy Minister Kiuchi states that PM Takaichi's administration maintains responsible, proactive policies while ensuring fiscal discipline and avoiding reckless spending

• Not in a state to declare exit from deflation right now.
• Need to carefully see various factors, including the sustainability of wage growth, to make sure Japan will not return to deflation.

Japanese Economy Minister Kiuchi's comments emphasize a cautious approach to fiscal policy, reinforcing that while proactive measures are being taken, there is a strong commitment to avoiding reckless spending. His remarks about not declaring an exit from deflation currently suggest ongoing concerns about inflation sustainability, which may impact market expectations on BOJ policy and influence both fixed income and currency markets.