Bloomberg Daybreak: Asia Edition Japan Finance Minister on Yen Weakness, Energy Outlook for 2026
Dec 23, 2025
Sayuri Shirai, an economics professor and former BOJ policymaker, discusses the yen's weakness, attributing it to real interest differentials and BOJ caution. She warns that intervention could be necessary if the yen continues to decline. Meanwhile, Peter Gardett, CEO of Noreva, highlights the growing energy demands of data centers and the challenges of ensuring adequate power supply. He also addresses the bottlenecks in energy infrastructure and the need for innovative solutions to meet future energy needs.
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Real Rates Drive Prolonged Yen Weakness
- Sayuri Shirai argues yen weakness stems mainly from a large real interest-rate differential and cost-push inflation in Japan.
- She expects the yen to remain weak next year unless U.S. policy shifts toward lowering rates.
US Likely To Back Japan If Yen Hits ¥160
- Shirai says U.S. Treasury will likely accept Japanese intervention because Japan seeks appreciation, not competitive depreciation.
- She identifies around ¥160 per dollar as a dangerous level that could trigger intervention.
Fiscal Moves Offer Little Relief To Households
- Shirai notes Takeuchi's tax cuts are small net gains because rising social-security and bracket effects offset them.
- She also highlights the government avoids direct measures to curb steep food-price rises.