Japan ruling party official says BOJ must seek to weaken yen further

LDP senior official Yamamoto

  • Japan likely to proceed with Olympics as scheduled even without spectators
  • holding Olympics as planned is good for Japan’s economy
  • government should compile extra budget worth 26 trln yen around Oct or Nov
  • Japan ‘absolutely’ does not need to keep pledge to achieve primary balance surplus in 2025
  • Bank of Japan must seek to weaken yen further by ramping up asset buying
  • BOJ is making a mistake by ‘stealth’ tapering of asset buying as deflation still a risk
Kozo Yamamoto is no lightweight, he heads the Liberal Democratic Party’s (LDP) financial research committee.
Yen is off a few ticks only.
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