Japan govt considering 25 trillion yen economic stimulus package - NHK

Further to the news back in November that Prime Minister Shinzo Abe had given orders for Japan’s first economic stimulus package since 2016 as his government frets about a global slowdown, the impact of higher consumption tax and the risk of a hangover from next year’s Tokyo Olympics, there are fresh headlines hitting the twitter feeds on the matter. 

  • Japan government considering 25 trillion yen economic stimulus package - NHK

As reported last month, and considering the concerns about the health of the global economy, the Japanese government officials had vowed to produce an “agile” and “comprehensive” stimulus that will take advantage of ultra-low interest rates and borrow in order to finance public investment.

Japan’s chief cabinet secretary, Yoshihide Suga, said at the time that, "to speed up our recovery [from natural disasters], deal with risks from abroad and accelerate productivity growth, we are formulating an economic plan along the lines of a 15-month budget."

FX implications

The package would hope to boost spending plans that would lift the economy all the way into 2021. The scale the stimulus is significant and 13 trillion yen would be included for fresh fiscal spending. USD/JPY is unchanged on the news and traders will want to see something formal in an official announcement and a commitment to maintaining higher yields on the longest duration bonds. 

The final decision will be made in consultation with the ruling party sometime soon – however, considering how much of the stimulus is already priced in and given the yen's safe-haven status, a bigger focus will likely stay with trade-deal noise, global equities, safe-haven and end-of-year flows.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD remains below 1.1100 in thinned holiday trading

The EUR/USD pair recovered from a fresh January low of 1.1076, but remains below the 1.1100 figure, and at risk of extending its decline. Critical support at 1.1065.


AUD/USD posts lower low daily basis

The Australian dollar remains among the weakest, and at risk of breaking below a multi-decade low of 0.6670. Waiting for Australian data to be out later this week.


Cryptos in search of fresh funds after tripping lower

XRP tests the bullish scenario and clings strongly to the upside. ETH/BTC consolidates in the bullish zone and prepares its ascent to the skies. Bitcoin and Ether move away from the combat zone in search of new upward forces.

Read more

Gold prices at inflexion point, now at the mercy of the Fed, Wall Street and US elections

Gold has been consolidating with a large speculative build up in the 1560s and the largest divergence between large speculators and commercials since Jan-March 2018, signalling that the market could be at an inflexion point.

Gold News

USD/JPY bounces from session lows confirming breakout on charts

USD/JPY is currently trading near 119.20, having found bids at 110.08 in early Asia. The bounce has confirmed a flag breakout on the 5-minute chart and opened the doors for 110.34. The bullish view would be invalidated if the spot finds acceptance below 110.15.