Japan Cuts Forecasts as Abe Advisers Urge Coordinated Stimulus
- Government is said to consider 10 trillion yen fiscal package
- GDP estimate slashed to 0.9% from 1.7%, CPI to 0.4% from 1.2%
Japan Cuts Growth and Inflation Forecasts
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Japan cut its forecasts for growth and inflation as two key advisers to Prime Minister Shinzo Abe urged coordinated stimulus from the government and the central bank to support the ailing economy.
Current thinking in the government is for a fiscal package of about 10 trillion yen ($96 billion), according to people familiar with the discussions. Koichi Hamada and Etsuro Honda, who helped the prime minister shape his Abenomics policies, said in separate interviews on Wednesday that any fiscal injection should be done in concert with a boost in monetary policy from the Bank of Japan, which meets later this month.