TOKYO, November 21, 2025 – Advisers to Japan’s new Prime Minister Sanae Takaichi are set to speak at a high-profile business panel hosted by Keidanren, Japan’s influential business lobby, on December 17. The discussion will focus on the government’s economic strategy and reflationary policies, taking place just one day before the Bank of Japan’s (BOJ) two-day policy meeting scheduled for December 18–19, where central bankers may consider adjusting Japan’s still-low interest rates.

Panelists and Economic Agenda

Key speakers at the panel include:

• Etsuro Honda, a close economic adviser to PM Takaichi, who previously cautioned that the BOJ should be careful about raising rates too quickly
• Masazumi Wakatabe, former BOJ Deputy Governor, who has indicated it will be difficult for the central bank to hike rates this year
• Toshihiro Nagahama, private economist and government panel member advocating for large-scale fiscal stimulus
• Takuji Aida, another economist supportive of reflationary policies

The panel will run from 2 p.m. to 4 p.m. JST in Tokyo and will focus on stimulus measures, fiscal policy, and reflation strategies aimed at strengthening the Japanese economy.

Government Stimulus and BOJ Policy

Since taking office last month, PM Takaichi has emphasized the need to reflate the economy through substantial public spending, backed by low interest rates. Her administration recently finalized a $135 billion stimulus package, likely funded through debt issuance, aimed at boosting growth and countering economic stagnation.

Market concerns over the expansionary fiscal policy and the prospect of slow BOJ rate hikes have contributed to the yen trading at 10-month lows against the U.S. dollar, sparking warnings from policymakers about potential inflationary pressures from a weaker currency.

Implications for Japan’s Economy

The Keidanren panel offers insight into the economic direction of the Takaichi administration and its approach to balancing fiscal stimulus with monetary policy. Analysts and investors will closely watch both the panel discussion and the BOJ meeting, as Japan navigates the challenges of sustaining growth, controlling inflation, and maintaining financial stability.