Shigeru Ishiba Appoints Katsunobu Kato as Finance Minister Amid Shift in Economic Policies

Japan's new leader Shigeru Ishiba appointed Katsunobu Kato, an advocate of Abenomics, as finance minister. The move aims to balance concerns over Japan's economic strategy. Kato pledged to continue fiscal and monetary expansion, focusing on wage and investment boosts. Ishiba has shifted his stance towards fiscal stimulus ahead of the general election.

Japan's new leader Shigeru Ishiba has appointed Katsunobu Kato, a proponent of Abenomics, as finance minister in a strategic move to balance economic concerns. Kato, a former health minister and finance ministry bureaucrat, pledges to continue the fiscal and monetary expansionary policies of former premier Shinzo Abe.

Kato lost to Ishiba in the ruling Liberal Democratic Party (LDP) leadership race but had vowed to continue Abenomics to increase household incomes. His appointment comes as Ishiba shifts focus from fiscal discipline to fiscal stimulus, indicating a potential shift in Japan's economic policy ahead of the upcoming general election.

Analysts note that Ishiba's economic strategy has become less clear, especially with his recent statements about investment taxes and monetary policy. The upcoming election and internal party dynamics are expected to influence his policy decisions further.

(With inputs from agencies.)