Japan's Government Revises Monetary Policy Language in Economic Plan on July 7

According to Asahi Shimbun, Japan's government on July 7 revised monetary policy language in its annual economic and fiscal policy guideline, known as Honebuto, after recent market volatility and misinterpretation of the initial draft.

The revised text now includes the phrase "appropriate financial policy contributing to stable price increases," replacing earlier wording that emphasized monetary policy was "very important" for achieving strong economic growth. A government official cited concerns that market participants had misunderstood the original language, triggering yen weakness and rising government bond yields. The final version is scheduled for cabinet approval by month-end.