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Market Chatter: Japan PM Takaichi Pushes Two-Year Food Tax Cut Despite Fiscal Risks

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Japan will proceed with a two-year food tax cut from 8% to 1% starting next April, despite the added pressure on Japan's already strained public finances, Reuters News reported on Thursday, citing Prime Minister Sanae Takaichi's comments at a press conference.

The move comes as her approval ratings slump, with households struggling under rising living costs driven by a weak yen and energy price shocks from the Middle East conflict, according to the report.

Takaichi confirmed the plan after directing ruling party officials to lay the groundwork for the tax cut, the publication reported.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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