Japan has set up a "Government Efficiency Department" to cut fiscal spending, paving the way for potential interest rate hikes by the Central Bank.

Recently, the Japanese government announced the establishment of the "Department of Government Efficiency" (DOGE), aimed at reviewing and cutting inefficient taxes and subsidies. This initiative is also part of Prime Minister Sanae Takaichi's commitment to implement a "responsible proactive fiscal policy."

According to foreign media reports, the department will conduct a comprehensive review of tax reduction measures, examine the effectiveness of high subsidies policies, and improve administrative efficiency across departments.

At the first cabinet meeting of the Department of Government Efficiency, the Ministry of Finance proposed a plan to identify and eliminate inefficient tax measures and subsidies. Finance Minister Satsuki Katayama emphasized that the joint effort of the entire nation to eliminate waste and direct funds to areas that truly need them is key to maintaining trust in the country, currency, and market.

It is reported that the Japanese version of the DOGE organization is expected to be far less radical than the same-named DOGE department led by Musk in the United States. Musk's team had symbolically promoted aggressive cost-cutting plans by wielding chainsaws, resulting in a large number of federal employees being laid off;

Japan is more likely to support Prime Minister Kishi Sanae's "proactive but responsible" fiscal policy commitment by cutting existing expenditures.

In addition, the Japanese government and the Central Bank of Japan maintain consistency in their economic assessments, with the bank's governor previously hinting at a possible interest rate hike in the December policy meeting, leading to heightened market expectations.

The Chancellor of the Exchequer, Katsuyuki Katayama, and the Minister of Economic Growth, Minoru Kiuchi, stated that the government and the Bank of Japan maintain a consistent financial strategy in their economic assessments.

#日本经济政策 # Financial Reform