Prime Minister Shinzo Abe's economic agenda is shaping up after his landslide election win with a focus on steering firms to hike wages and keeping the economic recovery going with loose fiscal and monetary policies.
Details emerged on Wednesday of policymakers' plans to push businesses to use their huge cash piles to boost salaries and moves to shift fiscal prudence targets, a sign Abe will continue to prioritize growth over austerity.
While the government has no immediate plans for a big spending spree, the Bank of Japan's pledge to keep borrowing costs virtually at zero with ultraeasy policy will allow lawmakers to delay steps to rein in the huge public debt, analysts say.