In an interview following his inaugural address to the Diet this past Friday, Japan’s newly appointed Prime Minister Shigeru Ishiba articulated his top economic priority: combating deflation and guiding Japan toward stable economic growth.
“I will decisively put an end to deflation and pave the way for our economic future,” Ishiba declared, reflecting the core messages of his recent campaign for the leadership of the ruling party. His remarks indicated a commitment to continue many policies of the previous administration.
The Prime Minister also emphasized his dedication to raising wages, boosting productivity, and revitalizing rural areas. He aspires to transform Japan into a “nation strong in investment” by encouraging a cultural shift from saving to investing. Politically, Ishiba pledged that the Liberal Democratic Party (LDP) would enhance transparency and uphold the rule of law.
His address seemed to appeal directly to voters as the elections on October 27 approach, as he seeks to rally their support.
Additionally, Ishiba instructed his cabinet to develop a spending program aimed at addressing the rising costs of essential items—ranging from rice to fuel—particularly for low-income families. This initiative will be implemented over a three-year period and focuses on eliminating deflation, indicating that the government is not yet prepared to declare victory over this economic challenge.
Interestingly, while Ishiba did not touch on monetary policy during his speech, he clarified to the media the day before that his views would align with those of Bank of Japan Governor Kazuo Ueda.
On the foreign policy front, Ishiba reaffirmed that the U.S.-Japan alliance will remain fundamental in tackling regional security issues, and he signaled Japan’s intention to bolster its own defense capabilities.
He also expressed a commitment to fostering constructive and stable relations with Beijing while maintaining Japan’s national interests. Additionally, he reiterated Japan’s unwavering support for Ukraine and its stance on sanctions against Russia.
