• Japan ready to pursue flexible fiscal policy to offset economic risks

Market news

21 June 2019

Japan ready to pursue flexible fiscal policy to offset economic risks

Japan's government on Friday signalled its readiness to pursue flexible fiscal spending next year to offset risks to economic growth.

The risks to the outlook for the world's third-largest economy in the wake of rising trade tensions and a growth slowdown globally could add pressure on the government to boost spending ahead of a planned sales tax hike in October.

In a long-term fiscal policy roadmap approved by cabinet on Friday, the government said it stands ready to take flexible macro-economic policy steps "without hesitation" if a downturn in overseas economies poses risks to Japan's economy.

The pledge came after Bank of Japan Governor Haruhiko Kuroda told on Thursday the government and the central bank must cooperate with each other to achieve sustained growth.

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.