Japan unveils new $10.9-bn stimulus package
13 Sep 2010
The Japanese government has sanctioned a fresh ¥915 billion ($10.9 billion) stimulus package to prop up the nation's export-led economy affected by the strengthening of yen, and to counter a possible slowdown in the recovery process.
The plan announced earlier was approved Friday by the cabinet of prime minister Naoto Kan, which is expected to boost the nation's gross domestic product (GDP) by about 0.3 per cent, and create around 200,000 jobs.
The government said it "will take decisive actions, including intervention in currency markets when necessary" to stem the yen's rise against other major currencies.''
The Japanese yen has appreciated over 10 per cent since the beginning of the year against the dollar, hitting a fresh 15-year high last week. The currency was traded at ¥84.17 a dollar on Friday in New York.
Continuous advancements in the currency against the US dollar has adversely affected the business sentiments of the export-dependent global economic giant, which was pushed to a third place by China in the second quarter of 2010, occupying the second position after the US.
The government also expressed hopes that the central bank will take additional necessary policy responses to beat deflation in close collaboration with the government. The Bank of Japan has held its key interest rate a marginal 0.1 per cent since the onset of the global financial crisis.
