© Stocksak. A woman chooses vegetables from a Tokyo supermarket, Japan, October 21, 2022. REUTERS/Kim Kyung-Hoon
TOKYO, Stocksak – On Monday, Toshimitsu Mokogi, secretary general of Japan’s ruling party, said that a planned spending package to offset rising living costs will amount to around 26 trillion yen ($174 Billion).
Prime Minister Fumio Kishida’s government is expected to approve this package at a cabinet meeting Oct. 28. This will be the same day that the Bank of Japan (BOJ), completes a two-day policy evaluation.
Contrary to other central banks, BOJ has maintained its ultra-easy policy. This is due to Japan’s slow economic recovery following the pandemic. Also, the central bank’s belief that inflation will fall below its 2% target sometime between 2023 and 2023.
The yen’s sharp decline this year due to the growing interest-rate differences between Japan and other countries has been blamed. Authorities fear that it is causing economic harm.
Motegi spoke at Kyodonews and stated that an early rate rise would do more harm to the economy than good.
According to Kyodo, he stated that “it should be a process of about one year, it would be difficult for suddenly raising interest rates.”
Kyodo stated that this was not the same as not reviewing the current bold policy of monetary easing.
($1 = 149.2800 yen)