Japan Abe’s Cabinet to Approve $130 Billion in Fiscal Steps to Boost Growth

Japanese Prime Minister Shinzo Abe’s cabinet is set to approve on Tuesday 13.5 trillion yen ($132.04 billion) in fiscal steps as part of efforts to revive the flagging economy with cash payouts to low-income earners and infrastructure spending.

The package is expected to include 7.5 trillion yen in spending by the national and local governments, and earmarks 6 trillion yen from the Fiscal Investment and Loan Programme, which is not included in the government’s general budget.

“We compiled today a strong economic package draft aimed at carrying out investment for the future. With this package, we’ll proceed to not just stimulate demand but also achieve sustainable economic growth led by private demand,” Abe told a meeting of cabinet ministers and ruling party executives on Tuesday morning.

Reuters

Gold Edges Higher as US Manufacturing, Construction Numbers Disappoint

Construction PMI to Add to Case for BoE Easing

Bank of England Prepares to Cut Rates into Uncharted Territory

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam