Japanese Finance Minister Satsuki Katayama told reporters on 5th December that all communications with Bank of Japan Governor Kazuo Ueda had been positive in most aspects since she assumed the office in October.

When asked about the monetary policy of the central bank, Katayama said in one of the regular press conferences, since accepting this position in October, “communications between Governor Ueda and me have been very good in most aspects.”

Bank of Japan Gov. Kazuo Ueda’s recent pitch for a December rate hike seems to have been accepted by markets and the administration. But how will the bank communicate Japan’s longer-term rate hike path? https://t.co/GNOuz8NTpI

— The Japan Times (@japantimes) December 4, 2025

Regarding the details of the monetary policy actions, she said, “they are left in the hands of the Bank of Japan.”

Reuters reported on Thursday that the BOJ is expected to increase interest rates this month, and the government will tolerate the choice.

After the recent dumping of long-term government bonds, Katayama added that as long as the government keeps a close watch over the market situation, the sustainability of the state finances of Japan and the confidence of the market will be properly maintained through continuous communication with the market participants.

The market concerns over Prime Minister Sanae Takaichi increasing the amount of economic stimulus to a staggering 10 trillion yen were reflected in the rising benchmark 10-year yield to 1.94 percent on Friday, its highest since July 2007.

The additional budget to finance the stimulus was prepared with fiscal sustainability in mind, and the government “is naturally considering sustainability in preparing the initial budget of fiscal 2026, according to Katayama.”