Takaichi Calls Approval Slide Hard to Analyse, Rebuts Yen Concerns

2026-07-27

Reaction to the approval drop

Prime Minister Sanae Takaichi attended intensive deliberations of the House of Representatives Budget Committee on the 27th. Asked about the fall in her cabinet's approval rating in opinion polls by media outlets, she said, 'It is difficult for me to analyse the cause of the drop. I do not know.' She also said she uses poll results from each outlet, including questions on policy, as reference material to gauge public sentiment. That was in response to Takeshi Shina of the Center Reform Alliance.

Draft Basic Policy and BOJ independence

Shina cited the so-called Basic Policy shock triggered by the draft of the Basic Policy on Economic and Fiscal Management and Reform, and said the yen had weakened on concerns that the government would intervene in Bank of Japan monetary policy to keep interest rates low. The prime minister referred to Article 3 of the Bank of Japan Act and said, 'Monetary adjustments should be handled by the BOJ. The means are also left to the BOJ.' She added, 'Strengthening the international competitiveness of the Japanese economy will, as a result, also support confidence in the yen.'

Imperial House Law and fiscal goals

Shina called for the swift launch of a panel of experts to discuss remaining issues, including whether to allow a female emperor or a female-line emperor, following passage of the revised Imperial House Law. Takaichi replied, 'There is no intention right now to immediately establish a new panel of experts. We will first make full preparations for the implementation of the revised Imperial House Law that has been enacted.' In response to Arata Takebe of the Liberal Democratic Party, she also said she wants to place a policy of steadily lowering the debt-to-GDP ratio at the core of fiscal management, and will ensure fiscal sustainability by fleshing out annual government bond issuance while taking market confidence into account.

Heatstroke measures and consumption tax

The prime minister also said she is considering setting up a cabinet ministers' meeting to discuss heatstroke countermeasures. In response to Mayuko Toyoda of Sanseito, she said, 'Of course we will verify the effectiveness of current measures, but while incorporating the latest knowledge and technology, we must further improve the effectiveness of heatstroke countermeasures.' Asked by Shinji Nagatomo of the Democratic Party for the People for her view on a consumption tax cut proposal discussed at the bipartisan Social Security National Conference, she said the matter has been left to a working-level meeting and will be wrapped up soon, adding only that 'we cannot pre-empt the conclusion.'

Sanae Token report

Yuichi Goto of the centrist camp pressed her over reports that the prime minister's secretary was involved with the cryptocurrency SANAE TOKEN (Sanae Token). The prime minister denied any involvement, saying, 'Neither I nor my office approved the issuance and trading of a crypto asset called Sanae Token, and I was not aware of it.' The Budget Committee had initially planned to hold intensive deliberations on the 24th during the extraordinary Diet session, but the start was expected to slip past midnight and the session was postponed until after it adjourned. The schedule was pushed back due to ruling and opposition clashes over a Diet vote on the House of Councillors bill related to the secondary capital concept on the 24th.

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