Regarding future fiscal management in response to the Bank of Japan's change in monetary policy, Finance Minister Suzuki stated that he intends to keep in mind the risk that interest payments on government bonds will increase due to a rise in long-term interest rates.
At the Monetary Policy Meeting held by the 19th of this month, the Bank of Japan changed its policy, including lifting the negative interest rate policy and ending the monetary policy framework known as yield curve control, which means that long-term interest rates will change in the future. It has also been pointed out that there is a possibility of an increase.
At a press conference after the Cabinet meeting on the 22nd, Finance Minister Suzuki was asked about the impact that the shift in monetary policy would have on Japan's public finances, which has a large amount of outstanding government bonds, and answered, ``This change in policy will It is difficult to give a general answer regarding the effects of factors such as long-term interest rates,'' he said, adding, ``Generally speaking, if interest rates rise and interest payments on government bonds increase, there is a risk that policy expenses will be pressured.'' It is important to take appropriate measures to avoid losing confidence in fiscal sustainability, while keeping risks in mind."
In addition, Minister Suzuki stated, ``We need to make repeated efforts to reform both expenditure and revenue, such as further standardizing the expenditure structure and securing stable funding sources for important policies.'' We reiterated our intention to move forward with this.