Japan ruling party exec urges $209 billion stimulus to combat inflation, weak yen – Sankei

By Kantaro Komiya and Daniel Leussink

TOKYO (Reuters) – A senior Japanese ruling party official on Thursday suggested a stimulus package of more than 30 trillion yen ($208.97 billion) is needed to address inflationary pressures in Japan’s economy, the Sankei newspaper reported.

“The supplementary budget of last year exceeded 30 trillion yen in size,” Koichi Hagiuda, the Liberal Democratic Party’s policy chief, was quoted as saying at a party meeting.

“Considering the price rises, global economic slowdown and weak yen and so on since then, more fine-tuned measures than last year are necessary.”

Haguida’s remarks follow comments from Prime Minister Fumio Kishida last week that the government will draw up a fresh economic package in October as it seeks to cushion the blow rising prices are delivering to households and businesses.

Kishida, who has seen his cabinet’s public support rates decline in recent weeks, is expected to instruct his cabinet later this month to compile a fresh stimulus package to offset the hit from rising living costs, Kyodo news agency reported on Wednesday.

The government has already unveiled near-term stimulus steps that include financial support to low-income households exempt from paying resident taxes and an extension of subsidies for gasoline and other measures until year-end.

($1 = 143.5600 yen)

(Reporting by Kantaro Komiya and Daniel Leussink; Editing by Raissa Kasolowsky and Kim Coghill)