Daily Management Review

Japan Will Put Together An Economic Package To Lessen The Sting Of Inflation


Japan Will Put Together An Economic Package To Lessen The Sting Of Inflation
The components of a new economic stimulus package that will be put together next month to assist households in easing the pain of price increases and improve salaries were presented by Japan's Prime Minister Fumio Kishida on Monday.

According to Kishida, his cabinet would be given the go-ahead to assemble the package and promptly establish an additional budget to pay for it on Tuesday.

It will also support sustainable wage and income growth, encourage domestic investment to boost the economy, reform to deal with population declines, and promote infrastructure investment. People will be protected from cost-push inflation by these measures.

The prime minister promised to move Japan's economy, which has a tendency to concentrate on cost-cutting, away from such practises with the new economic policies.

In addition, Kishida cautioned investors against selling the yen because doing so would increase import costs for goods like food and energy. He said that he was urgently monitoring currency movements.

"It's important for currencies to move stably reflecting fundamentals," Kishida said in his rare remarks on the foreign exchange market. "Excessive volatility is undesirable."

The additional budget's scope and magnitude are still unknown.

When questioned about the possibility of dissolving the lower house of parliament to hold an immediate election, Kishida responded that he was not considering such a course of action because he must now concentrate on the new stimulus and other pressing matters.