Japan PM Abe favors looser Debt-to-GDP ratio target

Omkar Godbole FXStreet Contributor

Reuters is carrying the headlines, which says Japanese PM Shinzo Abe is looking to ditch a pledge to balance the budget by fiscal 2020. Abe is in favor of a looser debt-to-GDP ratio target and wants to create “a free hand to delay again the unpopular sales tax hike”.

Abe, who twice delayed a hike to 10 percent after an increase to 8 percent in 2014, is likely to prioritize economic growth over consolidating the budget… as recommended by the IMF last week.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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