Japan's Kishida Orders Specific Stimulus Steps by End-October

  • In Business
  • 2022-09-30 02:25:06Z
  • By Bloomberg

(Bloomberg) -- Japanese Prime Minister Fumio Kishida instructed the government Friday to come up with an economic stimulus package by the end of October to help mitigate the impact of inflation and aid growth.

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The order from Kishida came during the morning's cabinet meeting, chief spokesperson Hirokazu Matsuno told reporters Friday. The measures will tackle price rises and the weak yen, encourage structural pay increases, and promote investment and reform for growth, Matsuno said.

Earlier this month, Kishida extended existing price-relief measures including gas subsidies and caps on imported wheat prices as well as adding cash handouts for low-income households and local government grants.

Matsuno didn't clarify the size of the set of measures, leaving unclear how much the government will spend at a time when the economy is showing signs of a resilient recovery.

Read more: Japan's Economy Shows Signs of Resilience Amid Stimulus Talk

"There seems to be talk of spending 30 trillion yen ($207 billion) but I think in reality what's really needed is just 5 or 6 trillion," said Shinichiro Kobayashi, chief economist at Mitsubishi UFJ Research & Consulting. "Japan's economy isn't teetering on the brink of crisis so what we need now is economic measures to help those who are suffering."

The central government already put together a 2.7 trillion yen extra budget earlier this year to fund efforts to control the impact of inflation.

Kishida said Thursday energy and food price rises are hitting households, and fears of a global recession remain a risk for Japan's economy.

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    (2022-09-30 06:02:29Z)

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