From Barchart: 2025-05-20 06:55:00

Japanese Prime Minister Shigeru Ishiba rejects tax cuts through increased debt due to Japan’s poor fiscal position, worse than Greece’s. Bank of Japan’s tapering of stimulus has raised short-term rates to 0.5%, increasing debt-servicing costs. Japan’s debt-to-GDP ratio exceeds 260%, but as a net creditor, domestic holdings prevent Greek-style turmoil. Ishiba resists calls for consumption-tax cuts ahead of July elections, citing strained revenues from rising social-welfare costs. Market participants can track BOJ policy meetings and data releases to anticipate rate moves affecting bond yields and government funding. Ishiba faces a fiscal dilemma balancing political pressures, aging-population costs, and unsustainable borrowing.



Read more at Barchart:: Japan’s PM Rejects Debt-Funded Tax Cuts, Warns Fiscal Health Worse Than Greece’s