Lates News

The Japanese Cabinet has approved a supplementary budget aimed at funding measures to mitigate the impact of inflation caused by the instability in the Middle East on households; this has once again made the country's fiscal policy a focus of attention for bond investors. The Japanese Cabinet has approved an economic stimulus package worth a total of 3.1 trillion yen (approximately $ 194 billion), including a newly established 2.5 trillion yen reserve fund to subsidize measures to address rising commodity prices. Although the government has not yet specified the specific uses of the fund, it is expected to be initially used to control gasoline prices. The Japanese Cabinet has also approved a plan to provide funding for the comprehensive plan, which will involve additional debt financing. The plan shows that despite the need for additional borrowing, the government is still expected to maintain the total amount of bond issuance unchanged on a calendar year basis, as some of the debt approved in the previous fiscal year budget will be canceled.