@Nirav_Finance
BREAKING — JAPAN MACRO UPDATE (Dec 26, 2025)
🇯🇵 Japan has released its latest budget outline, and markets are watching closely.
Prime Minister Sanae Takaichi moved to calm investor concerns around her expansionary fiscal stance, unveiling a ¥122.3 trillion ($785.4B) draft budget for the fiscal year starting in April. This comes on top of a ¥21.3 trillion stimulus package announced last November, aimed at easing household pressure from rising living costs.
Key details markets are focused on: • New government bond issuance capped at ¥29.6 trillion
• Debt reliance ratio held at 24.2%, the lowest level since 1998
• Emphasis on targeted, long-term strategic spending rather than broad stimulus
Despite the scale of spending, Takaichi stressed that the plan maintains fiscal discipline while supporting growth, attempting to preserve confidence in Japan’s reflationary path.
Investor caution remains elevated. Private-sector economists — including former BOJ Deputy Governor Masazumi Wakatabe — are calling for clearer, time-bound plans to gradually reduce Japan’s debt-to-GDP ratio.
The signal is nuanced: Not aggressive easing.
Not austerity.
A careful, proactive balance.
Markets stay on edge as Japan walks the line between growth support and long-term credibility.
