Japan’s new finance minister vows to finish the job as deflation czar

Japan’s new finance minister hinted Monday that the new administration might be less hawkish on rates than originally expected.

“I will put every effort into getting Japan out of deflation,” said Finance Minister Katsunobu Kato, who is also the minister charged with battling deflation.

Beating deflation requires loose monetary policy, according to Abenomics, of which Kato is a known supporter. The economic philosophy, introduced by the late former Prime Minister Shinzo Abe, is focused on ultralow interest rates, strong fiscal spending and a robust growth strategy, so financial conditions might remain accommodative for some time.