Japan to inject $60b into economy

The Japanese cabinet has approved a plan to pump more than $60bn (£38bn) into the country’s struggling economy.

The aim of the plan – which still needs approval from parliament – is to boost growth, jobs and spending.

The Japanese economy is suffering from deflation and a strong currency; prices keep falling, but consumers hold off spending in hope of lower prices.

Analysts said the key problem is that the yen is at a 15-year high, making exports more expensive.

Earlier this week, the Bank of Japan set interest rates at just above zero.

Japan’s Nikkei newspaper said the plan could boost GDP growth by up to 0.6% and help to save jobs.

BBC News

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell