The Japanese version of the "Government Efficiency Department" has been launched, and the Cabinet quickly responded to the Central Bank's hint of interest rate hikes.

On December 2, the Japanese government launched its own version of the “Government Efficiency Agency” (DOGE), which established a plan aimed at identifying and eliminating inefficient tax measures and subsidies during its first meeting. After the first DOGE meeting, Finance Minister Shunichi Suzuki told reporters on Tuesday, “By eliminating waste through the efforts of everyone, including the public, and directing funds to areas that truly need them, we will be in stark contrast to previous administrations. This is crucial for maintaining trust in the nation, in our currency, and in the markets.” Shunichi Suzuki also stated that she believes there is no discrepancy between the government and the Bank of Japan regarding the assessment of the economy, after Bank of Japan Governor Kazuo Ueda expressed confidence in the economic outlook and hinted at possible interest rate hikes. Japan's Economic Growth Strategy Minister Minoru Kiuchi reiterated these comments word for word, indicating that this response was coordinated within the cabinet and aimed at conveying a consistent signal of support. (Jin10)