Japan finance minister Katayama:
- JGBs are held predominantly by domestic investors so hard to foresee Japan defaulting on its debt
- Hope BOJ guides monetary policy to sustainably and stably achieve 2% inflation target
- As prime minister has said, govt’s view is that Japan has yet to see inflation sustainably hit BOJ target
- If yen makes free fall, that will push up import costs and cause inflation unseen in the past but we will pursue ‘responsible’ fiscal policy to avoid this from happening
- We are not ruling out tax cut as a future option in fiscal policy
This article was written by Eamonn Sheridan at investinglive.com.
