Japan ruling party indicates stimulus to total around $174 billion -Kyodo
Reuters
Published Oct 24, 2022 05:20AM ET
TOKYO (Reuters) - Japanese ruling party secretary general Toshimitsu Motegi indicated on Monday that a planned economic spending package aimed at cushioning the blow from rising living costs will total around 26 trillion yen ($174 billion), Kyodo news agency reported.
Prime Minister Fumio Kishida's administration is expected to approve the package at a cabinet meeting on Oct. 28, the same day the Bank of Japan (BOJ) completes a two-day policy review.
In contrast to many other central banks, the BOJ has stuck to its ultra-easy monetary policy citing Japan's slow economic recovery from the pandemic and the central bank's view that inflation would fall short of its 2% target sometime in 2023.
The growing interest-rate differentials between Japan and other countries have been blamed for the yen's sharp weakening this year to levels that authorities fear are harming the economy.
In a speech at Kyodo news, Motegi said an early rate hike would do more harm than good for the economy.
"It should be a process over about one year, and it would be difficult to suddenly raise interest rates," he said at the event, according to Kyodo.
He added, however, that "that was not the same thing as not reviewing the current bold monetary easing policy at all," Kyodo said.
($1 = 149.2800 yen)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.