Japan must ditch sales tax hike and deploy fiscal measures to boost consumption while maintaining an easy monetary policy, the Bank of Japan’s former deputy governor Kikuo Iwata said on Monday, according to Reuters.
Key quotes (Source: Reuters)
Japan must ramp up fiscal spending with debt bank-rolled by the BOJ.
Inflation won’t hit the 2 percent target just with the current monetary policy, fiscal policy needs to play a bigger role.
Further BOJ rate cuts could bring some financial institutions under.
Japan’s government must ditch this year’s sales tax hike and boost consumption via fiscal spending.
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