Japanese PM Takaiči faces historically low approval amid rising costs, weak yen

Japanese Prime Minister Sanae Takaiči is experiencing a significant drop in public support, with her approval rating falling to 57%, the lowest since she took office in October 2025. This marks the first time a Japanese leader's approval rating has dipped below 60% in recent history, and the current level is reportedly the lowest in 40 years for a prime minister.

The decline in popularity is closely linked to the weakening yen and the subsequent rise in the cost of living, which is straining household budgets across the nation. Despite these challenges, Takaiči remains optimistic about her government's economic strategy.

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The interest rates change based on various factors and are determined by the markets. It is difficult to assess the direct impact of any specific factor.

Speaking in parliament, Takaiči stated that her government's focus on stimulating economic growth and enhancing Japan's competitiveness will ultimately restore market confidence in the yen. She acknowledged that while the Bank of Japan holds exclusive authority over monetary policy, it is legally obligated to collaborate closely with the government.

Takaiči responded to an opposition lawmaker's question suggesting that the government's reluctance to support the central bank's plans for increasing interest rates might be contributing to the yen's depreciation. The yen recently hit a 40-year low against the dollar. While the Bank of Japan is expected to maintain its current low interest rates at its upcoming meeting, it may signal openness to future increases.

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Building a strong economy, by stimulating its growth potential and strengthening Japan's competitiveness, would lead to the restoration of market confidence in the yen.