The Organization for Economic Cooperation and Development will recommend that Japan maintain its easy-credit policy and avoid fiscal tightening to strengthen its fragile economic recovery.
A draft joint communique for the OECD's June 26-27 ministerial meeting in Paris says Japan's economic recovery "appears to be in place, but uncertainty lingers as to its strength and duration."
"The current easy stance of monetary policy should be maintained and fiscal consolidation should be avoided in the short run," the draft states, pointing to the need to "aim at sustaining the recovery in the short term without compromising the long-term health of the economy."