Key Facts
• May 27, 2025: Finance Minister Kato addresses rising interest rates in a press briefing.
• Kato states no disruption in stable issuance of government bonds despite rate increases.
• Rising interest payments could pressure policy expenses, requiring sound fiscal management.
• Government bond interest rates are market-determined; no direct comments on trends.
• Monitoring long-term bond market trends and engaging with market participants.
• Acknowledges rising long-term interest rates reflect Japan’s fiscal environment.
• Denies knowledge of SoftBank’s Masayoshi Son proposing sovereign wealth funds in Japan and the U.S.
Summary
Japanese Finance Minister Shunichi Kato stated on May 27, 2025, that the recent rise in interest rates has not disrupted the stable issuance of government bonds. He emphasized the importance of maintaining market trust in government bonds through sound fiscal management, as rising interest payments could strain policy expenses. While refraining from commenting on market-determined bond interest rates, Kato highlighted the government’s focus on monitoring long-term bond trends and engaging with market participants. He also acknowledged that the rise in long-term interest rates reflects Japan’s fiscal conditions. Separately, Kato denied any knowledge of reports suggesting SoftBank’s Masayoshi Son proposed creating sovereign wealth funds in Japan and the U.S.
