Noda looks to further easing to boost Japan's economy
Source: Bloomberg News |
October 22, 2012, Monday
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Print Edition
Print Edition
JAPANESE Economy Minister Seiji Maehara said the country needs more monetary easing and policy efforts to encourage growth as the government prepares for election against an opposition that has stronger public support.
The government plans to inject about 200 billion yen (US$2.5 billion) into the economy, Maehara said on a Fuji Television program yesterday, without giving details on the source of those funds. Spending this fiscal year includes 910 billion yen of stimulus programs requiring parliament's approval, 400 billion yen for earthquake recovery and a further 347.8 billion yen, he said.
"There are fiscal-easing moves worldwide, but on a monetary basis Japan is falling short," Maehara said. While "easing is not a panacea," without that and policy moves Japan's sovereign credit rating may face a downgrade, he said.
The government on October 12 issued a downgraded assessment of Japan's economy for a third month, the longest streak since the 2009 global recession, as gains in the yen and slowing overseas demand hurt exporters. Prime Minister Yoshihiko Noda, who last week ordered his Cabinet to draw up economic stimulus measures by November, failed to reach a deal with the two largest opposition parties on passing legislation needed to fund spending amid a standoff over the timing of a general election.
Noda met on Friday with Liberal Democratic Party leader Shinzo Abe and New Komeito head Natsuo Yamaguchi. The two parties supported legislation passed in August doubling the 5 percent sales tax in return for Noda's pledge to call elections ''soon'' and are blocking authorization of deficit-financing bonds until the premier follows through.
The government plans to inject about 200 billion yen (US$2.5 billion) into the economy, Maehara said on a Fuji Television program yesterday, without giving details on the source of those funds. Spending this fiscal year includes 910 billion yen of stimulus programs requiring parliament's approval, 400 billion yen for earthquake recovery and a further 347.8 billion yen, he said.
"There are fiscal-easing moves worldwide, but on a monetary basis Japan is falling short," Maehara said. While "easing is not a panacea," without that and policy moves Japan's sovereign credit rating may face a downgrade, he said.
The government on October 12 issued a downgraded assessment of Japan's economy for a third month, the longest streak since the 2009 global recession, as gains in the yen and slowing overseas demand hurt exporters. Prime Minister Yoshihiko Noda, who last week ordered his Cabinet to draw up economic stimulus measures by November, failed to reach a deal with the two largest opposition parties on passing legislation needed to fund spending amid a standoff over the timing of a general election.
Noda met on Friday with Liberal Democratic Party leader Shinzo Abe and New Komeito head Natsuo Yamaguchi. The two parties supported legislation passed in August doubling the 5 percent sales tax in return for Noda's pledge to call elections ''soon'' and are blocking authorization of deficit-financing bonds until the premier follows through.
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