Japan's Chief Cabinet Secretary stated that Japan will not implement fiscal policies that could damage market confidence and will continue to work closely with the Bank of Japan.
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Japan's Finance Minister reiterated that the government will respond appropriately to the yen's exchange rate.
Odaily Odaily reports that Japanese Finance Minister Satsuki Katayama stated on Friday that she would not comment on specific foreign exchange levels, but that the government is prepared to take appropriate measures to address currency fluctuations. At a regular press conference, Katayama also emphasized that the Japanese government has maintained close contact with US authorities regarding foreign exchange issues. Regarding the rising yields on Japanese government bonds, she stated that efforts will be made to implement fiscal policies to gain market confidence. Specific monetary policy decisions will be made by the Bank of Japan. It is expected that the Bank of Japan will maintain close communication with the government and will adopt appropriate monetary policy to stabilize and achieve its price target. Regarding the Bank of Japan's economic blueprint, she stated that there are currently no new developments. (Jinshi)
SEAJ has significantly raised its sales forecast for Japanese-made semiconductor equipment in fiscal year 2026, expecting it to break records.
According to Mars Finance, SEAJ released a forecast report stating that driven by the investment boom in advanced logic chips for AI servers, coupled with a significant expansion of DRAM production line investment centered on HBM, the global equipment sales forecast for Japanese semiconductor equipment manufacturers in fiscal year 2026 has been revised upwards by approximately 20%, amounting to an increase of 1.0498 trillion yen, from the previous January 2026 estimate of 5.5004 trillion yen. The latest forecast is 6.5502 trillion yen. This represents a substantial year-on-year increase of 26.0% compared to fiscal year 2025, and annual sales will surpass the 6 trillion yen mark for the first time, setting a new historical peak for the third consecutive year. SEAJ also noted that demand for AI server chips remains strong, with several new wafer fabs coming online. Therefore, the sales forecast for Japanese semiconductor equipment in fiscal year 2027 has been significantly revised upwards from the previous estimate of 5.6104 trillion yen to 7.4017 trillion yen, a year-on-year increase of 13.0%, potentially setting a new historical high for the fourth consecutive year. (Cailian Press)
Private members of the Council on Economic and Fiscal Policy in Japan: The Bank of Japan should continue raising interest rates at a moderate pace.
According to Odaily Odaily, Toshihiro Nagahama, a private member of the Advisory Council on Economic and Fiscal Policy, said that the Bank of Japan should continue to raise interest rates at a moderate pace. A moderate interest rate hike by the Bank of Japan is crucial to correcting the excessive depreciation of the yen. Yongbin Liguang: I personally believe that a rate hike in June is appropriate, because delaying the rate hike would lead to excessive depreciation of the yen, harming households. (Jinshi)
The People's Bank of China: We will continue to implement a moderately loose monetary policy and increase counter-cyclical and cross-cyclical adjustments.
According to BlockBeats, on July 8th, the Monetary Policy Committee of the People's Bank of China held its second quarterly meeting of 2026. The meeting analyzed the domestic and international economic and financial situation, concluding that the current external environment is more complex and volatile, with weak global economic growth momentum, frequent geopolitical conflicts and trade frictions, divergent economic performance among major economies, and uncertainties surrounding inflation trends and monetary policy adjustments. While my country's economy is generally stable and moving towards new and improved directions, achieving new results in high-quality development, it still faces problems and challenges such as strong supply and weak demand, structural differentiation, and external shocks. The meeting stressed the need to continue implementing a moderately loose monetary policy, increase counter-cyclical and cross-cyclical adjustments, better leverage the dual functions of monetary policy tools in terms of both aggregate and structural aspects, strengthen the coordination of monetary and fiscal policies, and promote stable economic growth and a reasonable recovery in prices.
The US dollar fell briefly against the Japanese yen, touching 161.13.
According to Mars Finance, on July 2nd, the USD/JPY exchange rate briefly fell by over 100 points, hitting a low of 161.13, before rebounding and currently trading at 161.7. Previously, Toshihiro Nagahama, a private member of the Council on Economic and Fiscal Policy, stated that the Bank of Japan should continue raising interest rates at a moderate pace, as this is crucial to correcting the excessive depreciation of the yen. He believes the Bank of Japan should raise rates every six months, a pace that would not harm domestic investment. He predicts the Bank of Japan will raise rates at the end of this year, then again next summer, after which it will pause rate hikes. He added, "I personally think a June rate hike is appropriate because delaying rate hikes would lead to excessive yen depreciation, harming households."
Nomura: Japanese Prime Minister's economic blueprint may influence the timing of the Bank of Japan's interest rate hike.
According to Mars Finance, on July 2nd, Nomura Research Institute economist Takahide Kiuchi stated that if Japanese Prime Minister Sanae Takaichi uses her "basic policy" economic blueprint (expected to be approved by the cabinet this month) to prevent further interest rate hikes, it could delay the timing of the Bank of Japan's next move. He said, "Even if the government opposes it, the Bank of Japan will raise interest rates when it deems it necessary, but it may respect the government's wishes regarding the timing of the rate hike to some extent." He added, "Government pressure against the Bank of Japan's rate hikes could further weaken the yen and lead to lower bond prices, which would undermine the stability of the country's economy and financial markets." (Jinshi)