Japan’s Aso: See no immediate need to review FY2025/26 budget goal

Dhwani Mehta FXStreet

Speaking to reporters after a cabinet meeting on Friday, Japanese Finance Minister Taro Aso dismissed reports that the coronavirus stimulus spending may force the government to ditch its 2025/26 fiscal target.

Key quotes

“I’m aware there are negative factors, including extra budget spending, surrounding the 2025 fiscal target, but I see no immediate need to review it.”

“Japan remains committed to its aim of balancing a budget by the fiscal year-end in March 2026.”

This comes after the government’s draft policy framework out on Wednesday left out any explicit mention of its target to achieve a primary budget surplus by fiscal 2025, per Reuters.

Market reaction

The yen is gaining momentum in early Europe, as risk-off mood remains at full due to rising coronavirus cases globally. USD/JPY extends losses below 107.00, last seen trading at 106.94.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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