28-Sep-2010 7:37 AM
Japan considers up to USD55bn extra stimulus
Japan's Government is reportedly considering a stimulus package of as much as JYP4.6 trillion (USD54.6 billion) that will be funded with existing revenue (Bloomberg, 27-Sep-2010). The plan is part of efforts to shore up the Japanese economy, which has been affected by the increase in the yen to the highest level in 15 years and weakening exports, with Vice Finance Minister Fumihiko Igarashi stating the fiscal situation is in an "emergency state". Economy Minister Banri Kaieda added that additional liquidity injections by the Bank of Japan could be effective in influencing the yen, with BOJ Governor Masaaki Shirakawa adding that he is ready to act when required.