Economics
BOJ Would Back Government Stimulus in October, Ex-Official Says
- Hayakawa says BOJ would absorb JGB issuance for extra spending
- Central bank also likely to extend pledge on low rates in July
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The Bank of Japan would offer support for a government spending package likely to be unveiled in October when a national sales tax is increased, according to a former central bank official.
The move would have symbolic importance, showing the central bank and government working in tandem to support the economy as it faced the additional risk of the higher tax hitting consumption, Hideo Hayakawa, a former executive director at the BOJ, said in an interview.