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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD stays below 1.3350 on poor UK PMIs

GBP/USD hits fresh session lows of 1.3335 following an unexpected drop in the UK's Preliminary Manufacturing and Service PMI reports. However, the downside appears capped amid growing Brexit optimism. 


EUR/USD keeps range around 1.1130 on downbeat PMIs

EUR/USD trims gains to trade near 1.1130 region after the sentiment around the euro was dented by the disappointing German and Eurozone Preliminary Manufacturing PMIs. Trade concerns also keep the gains limited. 


The phantom of fear pierces crypto market foundations

Negative technical indicators are extremely volatile and are approaching a technical rebound. Ethereum has fundamentals in play versus Bitcoin which could be lethal. XRP is not immune to downfalls and adds to the dangerous game of critical supports.

Read more

Gold consolidates in a range, flat-lined around $1475 level

Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.

Gold News

USD/JPY clings to modest gains, just below mid-109.00s

The USD/JPY pair edged higher on the first day of a new trading week, albeit lacked any strong follow-through and remained well within the previous session's trading range.