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Takaichi Sets Japan’s Course With ‘Sanaenomics’ as Markets Rally

Signals of fiscal restraint with BoJ coordination target durable, security‑minded growth.

Overview

  • Sanae Takaichi begins her premiership with unusually strong approval and a near 10% equity rise since her Liberal Democratic Party leadership win.
  • Her program pledges a responsible proactive fiscal policy with guidelines to contain the debt‑to‑GDP ratio while supporting investment‑led growth.
  • She has stopped pressuring the Bank of Japan to slow normalization and emphasizes policy alignment, with the 2013 government–BoJ accord serving as a coordination anchor.
  • Takaichi instructed ministers to launch a Japan Growth Strategy Council to shape long‑term policy and crisis‑management investment in areas such as climate, energy and demographics.
  • Coverage underscores a defense‑focused agenda and closer U.S. ties, while critics caution that more stimulus would not resolve deep structural strains including heavy debt, high taxes and a weak yen.