Bank of Japan Governor Ueda Kazuo recently stated that the long-term sustainability of fiscal policy needs to be built on the foundation of market trust, which cannot be established without effective government guidance and institutional design. In his view, the stable operation of fiscal policy and the healthy development of financial markets form a mutually supportive relationship, and the coordination between the two constitutes fundamental support for maintaining sustained economic growth.

Ueda went further to point out that market participants' expectations regarding the sustainability of government finances directly affect the pricing and risk premium levels in financial markets. When the market forms stable expectations about long-term fiscal prospects, it helps reduce government financing costs and thereby releases more policy space for economic development. This viewpoint reflects the central bank's deep understanding of the policy coordination mechanism between fiscal and financial policies, and provides important guidance for future policy directions.