Japanese Prime Minister Shinzo Abe on Wednesday said his government is set to unveil a stimulus package of more than 28 trillion yen ($266 billion) to boost the sluggish economy.

He made the announcement in a speech in southwestern Japan and said that the package would include 13 trillion yen in fiscal measures. More details of the plan would be revealed next week.

Expectations that the Abe government was set to announce an economic stimulus have been building since May. Markets were widely expecting a package of over 10 trillion yen.

Meanwhile, the Bank of Japan is set to begin its two-day policy session on Thursday, following which the bank is widely expected to announce further monetary easing on Friday. - rtt