Japan PM Rules Out Tax Cuts Amid Economic Concerns

Japan's leader, Mr. Ishiba, said they won't cut taxes by borrowing more money.

He's worried because interest rates are going up, and the country already owes a lot.

Mr. Ishiba is facing pressure to cut taxes due to the economy shrinking and US tariffs.

The Finance Minister explained that if people lose faith in Japan's finances, borrowing costs could skyrocket, making things much worse.

The central bank is also slowing down its bond buying, which will increase borrowing costs.

The economy recently shrank, showing how fragile it is.