Japan’s opposition leader calls for more fiscal stimulus, not rate hike to cope with weak yen

In an interview with Reuters, Yuichiro Tamaki, the head of Japan’s Democratic Party for the People suggested that the government needs to roll out more fiscal stimulus instead of hiking policy rates to stem the recent rapid depreciation of the yen.

Key quotes

"The dollar is gaining against all the currencies. Even if the Bank of Japan raises rates, it wouldn't stop the yen weakening but rather hurt Japan's economy.”

"We must mobilize fiscal spending steadily to strengthen the economy.”

“The BOJ should add nominal wage growth of 2% to its 2% inflation target stipulated in a joint accord between the government and the BOJ issued in 2013.”

"We need to plainly explain to the public which indicator should be used for the 2% target.”

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