Japan’s Finance Minister Satsuki Katayama said the government expects the country’s debt-to-GDP ratio to fall slightly from last year’s level, even after compiling an extra budget to finance its latest stimulus package. The remarks aim to reassure markets concerned about Japan’s heavy borrowing needs.
Katayama also said Japan is only “halfway” toward achieving stable, sustainable inflation accompanied by wage growth, a key milestone shared by both the government and the Bank of Japan. She noted that the BOJ agrees with this assessment, underscoring a unified view on the economy’s slow transition out of deflation.
She added that close coordination between the government and the central bank remains essential to ending deflation and securing durable price and economic growth.
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Earlier from the players in Japan:
- Japan trying some verbal yen intervention after the close, can’t blame ’em for trying
- Japan fin min with some verbal intervention to try to support the yen
- Japanese finance minister Katayama – another attempt at verbal intervention yen support
- Bank of Japan Governor Ueda says weak yen pushes up import prices, factor in higher CPI
This article was written by Eamonn Sheridan at investinglive.com.