Japan PM Suga’s ally calls for more fiscal and monetary stimulus
|Yoichi Takahashi, a former Japan’s finance ministry bureaucrat and close ally of Prime Minister (PM) Yoshihide Suga, urged policymakers to roll out additional fiscal and monetary stimulus to support the economic recovery from the coronavirus pandemic.
Key quotes
“There are “no limits” to what monetary policy can do to achieve higher inflation, at least until the Bank of Japan achieves its elusive 2% inflation target.”
“Suga was absolutely right to say he would continue Abenomics,” Takahashi added, referring to Abe’s reflationary measures, including more bold monetary easing, flexible fiscal spending and reform.
Market reaction
USD/JPY is unfazed by the above comments, keeping its range play intact around 105.60.
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