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Japan unveils USD113bn stimulus to fight inflation, boost economy

Japanese Prime Minister Fumio Kishida has unveiled a USD113bn stimulus package to mitigate inflation impacts, amid declining poll ratings and increasing prices since the Ukraine war. The package aims to bolster supply capacity and corporate earnings, with further details pending. Proposed measures include tax reductions, cash handouts for low-income households, fuel subsidies, and investment promotion in high-tech sectors. However, this move is set to deepen Japan's national debt, already one of the highest globally. Despite global trends of rising inflation and a weakening yen, the Bank of Japan maintains its ultra-loose monetary policy, resulting in a depreciating yen. The government signals readiness to intervene in the currency market, with Kishida expressing optimism about transitioning to a new economic stage.

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