Japan considers compiling $95.5 billion extra budget to counter coronavirus
|The Japanese government is said to compile an extra budget worth around $95.5 billion to counter the economic damage induced by the coronavirus pandemic, a local newspaper, Mainichi, reported over the weekend.
Key takeaways
“The government is likely to debate using the 10 trillion yen ($95.52 billion) budget to extend a labour subsidy program scheduled to end in December and to pay for the distribution of a coronavirus vaccine.”
“The government may consider whether to use some of the funds to extend a popular domestic travel subsidy scheme but is unlikely to offer more direct cash handouts to households.”
“The government has 7 trillion yen in reserves leftover from an earlier coronavirus aid package that it can use to fund the extra budget.”
Market reaction
USD/JPY is holding the recent advance near 104.85, up 0.16% on the day. The spot benefits from an uptick in the US dollar against its major peers and reports of economic outlook downgrade by the BOJ this week.
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