Japan's new ministers vow bold action for pandemic-hit economy
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[October 05, 2021] By
Daniel Leussink and Tetsushi Kajimoto
TOKYO (Reuters) -Japan's new finance and
economy ministers vowed on Tuesday to take bold policy action to
revitalise the pandemic-hit economy, a sign that fiscal and monetary
stimulus will remain intact under a government led by Prime Minister
Fumio Kishida.
Finance Minister Shunichi Suzuki said he was told by Kishida to stick to
bold monetary easing, flexible fiscal spending and a growth strategy to
put a decisive end to deflation.
"I hope the Bank of Japan strives to achieve its price target while
ensuring markets and corporate funding remain stable," Suzuki told
reporters at his first news conference since Kishida formed his cabinet
on Monday.
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The new economy minister, Daishiro Yamagiwa, told a separate news
conference the government would take all necessary measures to support
the economy "in a flexible manner without hesitation".
Kishida has pledged https://www.reuters.com/world/asia-pacific/japan-may-sell-more-bonds-fund-next-premier-kishidas-stimulus-package-2021-10-01
to compile a stimulus package worth tens of trillions of yen, which may
help firm up growth in the world's third-largest economy.
Suzuki said he could not say now how big the stimulus package could be,
as that would depend on deliberations among policymakers and the ruling
coalition.
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![](../images/100521PIX/2021-10-05T084817Z_2_LYNXMPEH9405E_RTROPTP_4_JAPAN-POLITICS_small.JPG)
Japan's new Minister for Economic Revitalisation Daishiro Yamagiwa
arrives at prime minister's office in Tokyo, Japan October 4, 2021.
REUTERS/Issei Kato
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"Japan's fiscal state has become more severe due to the cost of dealing with the
pandemic," he said, stressing the need to ensure Japan maintain market trust
over it finances by laying a long-term path toward fiscal reform.
Japan's COVID-19 case numbers plummeted to the lowest in nearly a year on Monday
and steady vaccinations have raised hopes of a rebound in consumption from
pent-up demand, as the economy gradually re-opens.
But smaller retailers continue to suffer from slow sales and many part-time jobs
were lost, weighing on a fragile recovery that is also taking a hit from slowing
exports and output blamed on supply constraints.
The government was watching oil prices carefully as rising fuel bills would hit
corporate profits and increase the burden on households, new chief cabinet
secretary Hirokazu Matsuno said.
(Reporting by Daniel Leussink and Tetsushi Kajimoto; Writing by Leika Kihara;
Editing by Muralikumar Anantharaman, Robert Birsel)
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