The tax cut is politically attractive because it targets the item voters feel most frequently: food. A large tax cut without clear revenue offsets could deepen concern that the government is prioritizing political relief over fiscal discipline. The government can argue that a food-tax cut is broad, visible and directly linked to daily living costs. Currency intervention remains possible if movements become excessive, but intervention cannot solve the underlying tension between Japan’s fiscal stance, BOJ policy and global interest-rate differentials. The cabinet is expected to finalize the food-tax cut plan in early August, including how the revenue loss will be handled and whether the two-year limit can be made politically credible.