Takaichi's falling approval ratings fuel interest rate concerns

PoliticsJapanese leader may use tax cut to burnish image as cabinet reshuffle rumors flyJapanese Prime Minister Sanae Takaichi has indicated that she intends to submit legislation to cut the consumption tax. (Photo by Takashi Miyazaki)SACHIYO OISHIJuly 29, 2026 07:00 JSTTOKYO -- The domestic bond market sees the plunging approval ratings of Japanese Prime Minister Sanae Takaichi's cabinet as putting upward pressure on interest rates as concerns spread about future risk premiums due to expansionary fiscal policies aimed at winning support.