Japan to curb electrical energy prices amid weak yen, recession dangers, PM says

Japan will take “unprecedented” measures to curb rising electrical energy payments for households and companies as a weak yen followers inflation and international recession fears pose large dangers to the financial system, Prime Minister Fumio Kishida informed parliament on Wednesday.

“Rising energy and food prices due to Russia’s invasion of Ukraine, coupled with a weak yen, and the fears of global economic slowdown are big risk factors to Japan’s economy,” Kishida mentioned.

Consumer costs in Japan’s capital Tokyo rose in September on the quickest tempo since 2014, authorities knowledge confirmed on Monday, highlighting the growing burden for households from the yen’s plunge to 24-year-lows.

The authorities will compile one other financial stimulus plan by the tip of October, together with a uncommon measure to immediately ease the rise of electrical energy costs which might be topic to abrupt worth flare-ups, Kishida mentioned.

Faced with falling public approval charges, Kishida’s ruling celebration is contemplating a contemporary spending package deal price no less than $100 billion to handle inflation.

On the weak yen, it can be crucial for Japan to hyperlink it to financial revitalisation by way of a restoration of inbound tourism, bringing firms again to the nation and increasing agricultural exports, Kishida mentioned.

When an opposition lawmaker requested in regards to the Bank of Japan’s (BOJ) ultra-easy coverage that has fuelled the yen’s decline amid international central banks’ tightening, Kishida mentioned particular financial coverage strikes, resembling an exit from easing, have been as much as the BOJ to resolve.