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Japanese Prime Minister Sanae Takaichi has retained several key ministers in a cabinet reshuffle to strengthen her ruling coalition and to advance plans to cut the consumption tax on food next year.
The reshuffle, announced on Thursday, comes as Japan faces rising inflation, a weak yen, and concerns over how the planned tax cut will be financed.
Japanese prime ministers routinely reshuffle their cabinets to refresh the government’s public image and assign ministerial posts to loyal supporters and experienced lawmakers from their party.
However, Takaichi, who has recorded unusually high approval ratings nearly a year into office, retained several core members of her administration, according to the cabinet list announced by Chief Cabinet Secretary Minoru Kihara.
Kihara will remain in his position, alongside Finance Minister Satsuki Katayama, Foreign Minister Toshimitsu Motegi and Defence Minister Shinjiro Koizumi.
Key economic ministers were also retained, including Trade and Industry Minister Ryosei Akazawa, who has led Japan’s tariff negotiations with the United States, and Economic Growth Strategy Minister Minoru Kiuchi, who supports increased government spending.
Under Katayama, Japan has repeatedly intervened in the foreign exchange market to support the weakening yen, including a rare joint intervention with the United States.
The limited reshuffle comes as Takaichi pursues a reduction in the consumption tax on food from next year.
Although the proposed tax cut is popular among voters, economists have criticised the plan, saying the government has yet to identify about five trillion yen ($32 billion) required annually to finance it.
Takaichi’s expansionary spending policy has also unsettled financial markets, with Japan’s benchmark bond yield reaching around 3.0 per cent, its highest level in three decades.
Koizumi will retain responsibility for revising Japan’s key national defence strategy documents while overseeing efforts to increase defence spending.
Following his reappointment, Koizumi said the review would have significant implications for Japan’s security and the wider region.
He said the Defence Ministry would need to commit all available resources and accelerate the review with urgency.
Takaichi also appointed Hiroshi Nakatsuka, 70, a member of the Japan Innovation Party, as minister in charge of regulatory reform.
The JIP formed a ruling alliance with Takaichi’s conservative Liberal Democratic Party in October but had previously declined cabinet posts.
Takaichi is expected to hold a press conference later on Thursday after the reshuffled cabinet is formally inaugurated following an attestation ceremony at the Imperial Palace.
