Kozo Yamamoto, Japanese senior ruling party lawmaker with close ties to PM Shinzo Abe and one of the architects of the premier’s stimulus policies, was reported by Reuters as saying that the government will likely proceed with a scheduled sales tax hike in October.
“It was a mistake,” Yamamoto said of the BOJ’s decision in 2016 to change its policy target to interest rates instead of the pace of money printing, adding that rate cuts are not as effective a tool as large-scale asset purchases.
“The prime minister told me while I may be theoretically right, it was politically difficult” to put off the hike.
“The government should increase spending if the tax hike hurts the economy too much.”
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.