# Takaichi denies blame for weak yen and high rates

> Japan's prime minister rejects criticism that her policies caused currency weakness and rising bond yields, arguing a strong economy will restore confidence.
- Title: Takaichi denies blame for weak yen and high rates · CNBC
- Summary: Japan's prime minister rejects criticism that her policies caused currency weakness and rising bond yields, arguing a strong economy will restore confidence…
- Keywords: sanae takaichi, japan, yen, japanese government bonds, monetary policy, interest rates, business, finance, Takaichi, denies, blame, weak
- Source: CNBC — https://cnbc.com/2026/10/19/takaichi-weak-yen-jgb-yields.html
- Author: Lim Hui Jie
- Published: 2026-10-19T05:29:23+00:00
- Read time: 1 min
- Topics: sanae takaichi, japan, yen, japanese government bonds, monetary policy, interest rates, business, finance
## Takaichi rejects dual criticism
Speaking in parliament, Japan's Prime Minister Sanae Takaichi denied responsibility for both the yen's weakness and rising interest rates, saying she clearly denies the charges.

> I have been repeatedly criticized for 'Takaichi's weak yen' and 'Takaichi's high interest rates,' but I clearly deny that
## Currency and bond market pressures
Under Takaichi's administration, the yen weakened to its lowest since nineteen eighty-six while Japanese government bond yields rose to multi-decade highs, prompting intervention.
## Takaichi's economic confidence argument
The prime minister said building a strong economy would increase confidence in the yen, addressing opposition lawmaker Yoshifumi Hamano's question about a second supplementary budget.
## Bond issuance control pledge
Takaichi said her administration intends to appropriately control the amount of government bond issuance as Japan's central bank raises its policy rate and normalizes monetary policy.

> We intend to appropriately control the amount of government bond issuance
## Expert skepticism on spending plans
Takaichi announced total bond issuance for calendar year twenty twenty-six would remain unchanged, but Jesper Koll at Monex Group said bond markets know spending increases require more debt.

> Bond markets are a lot of things, but they're not stupid. You cannot increase spending without increasing debt.
## Key takeaway

Prime Minister Sanae Takaichi denied responsibility for Japan's weak yen and rising government bond yields, saying a stronger economy would restore currency confidence.