Fresh spending and the debt issued to pay for it would help fuel the BOJ’s easing campaign and have a beneficial impact on the yen and stocks, according to Kozo Yamamoto.
For Yoshiaki Nohara's latest contributions to The Japan Times, see below:
Experts say that suppressing activity for a little longer won’t add too much extra damage to an economy that is already showing some signs of recovery even under existing restrictions.
Industrial output rose 4.2% in January from the previous month, with production of memory chips and semiconductor equipment climbing, the trade ministry reported Friday.
Ahead of a policy review, BOJ Gov. Haruhiko Kuroda said this week his 2% goal won't be reached before 2024, amid concern price and pay cuts could dent sentiment.
Economists warn that the full impact will depend on whether the newly-imposed lighter measures are enough to rein in the spread of COVID-19.
Prices excluding fresh food fell 0.9% from a year earlier, as a steeper drop in energy costs drove the index down further after October’s 0.7% drop.
With Cabinet support falling amid the uptick in COVID-19 cases, he needs to balance the need to support growth against the risk of spreading the virus.
Lockdowns overseas and renewed concerns over the virus at home already appear to be impacting activity in Japan’s economy, according to PMI data released Friday.
Economists see gross domestic product jumping at an annualized pace of 18.9% in the three months through September, helped by improved trade with the United States and China.
The figures come ahead of a meeting next week in which the Bank of Japan will give its latest inflation forecasts.