Takaichi to keep key ministers in cabinet reshuffle

Japanese Prime Minister Sanae Takaichi is expected Thursday to retain her key ministers in a cabinet reshuffle aimed at solidifying the ruling coalition and advancing a controversial tax cut.

Japanese prime ministers routinely shuffle their cabinets to refresh the government's public image and to distribute ministerial posts to loyal supporters and experienced lawmakers from the same party.

However, Takaichi -- who has unusually high approval ratings a year into office -- will likely keep core members of her team, according to local media. They reportedly include the minister of finance, foreign affairs, defence and economy.

Finance Minister Satsuki Katayama is expected to remain as the premier navigates rising inflation and a weak yen while pursuing a contentious consumption tax cut on food starting next year.

Under Katayama, Japan has repeatedly intervened in the foreign exchange market to prop up the falling yen, including a rare joint intervention with the United States.

While Takaichi's tax cut pledge is popular among voters, economists have criticised the plan, warning that she has failed to identify around five trillion yen ($32 billion) needed annually to fund it.

Takaichi's policy of expansive government spending has also rattled the markets, pushing Japan's benchmark bond yield to around 3.0 percent, its highest level in three decades.

On defence, Japan's first woman prime minister is expected to keep Shinjiro Koizumi, who is tasked with updating Japan's foundational national defence strategy documents alongside implementing a push to expand defence spending.

Industry minister Ryosei Akazawa is also likely to stay in post as he serves as Japan's pointman on tariff negotiations with the United States, local media say.

Veteran Foreign Minister Toshimitsu Motegi and Chief Cabinet Secretary and Takaichi's righthand man Minoru Kihara are all expected to retain their assignments, according to local media.

Takaichi is also set to assign a ministerial post to her coalition partner Japan Innovation Party.

The JIP formed a ruling alliance with Takaichi's conservative Liberal Democratic Party in October, but until now had chosen not to join her cabinet.