The Japanese government decided to support the economy with a new stimulus package worth $ 708 billion, to confront the deep recession that struck the country due to the Corona virus.
According to Arabianet, the new package will include about $ 385 billion in direct financial spending and initiatives aimed at reducing carbon emissions and promoting digital technology adoption.
The Bank of Japan earlier trimmed its forecast for the economy and prices in the current fiscal year, but revealed a more optimistic vision about the chances of recovery, indicating that the stimulus measures it took are sufficient So far.
The central bank warned that expectations are shrouded in intense uncertainty due to the repercussions of the pandemic on spending in the services sector and the renewed increase in HIV infections in Europe, which undermines the chances of a sustainable global recovery. / p>
and as was widely expected, the central bank kept its monetary policy unchanged, keeping its short-term interest rate target at -0.1% and maintaining a commitment to guide long-term rates About zero.
The Bank of Japan has not introduced any amendments to a package of measures aimed at easing financing restrictions on companies, which has become its main tool
To deal with the economy in the midst of the pandemic afflicting it.
In a quarterly report, the bank lowered its growth forecast for the current fiscal year ending in March 2021 to a contraction of 5.5% from the 4.7% contraction in the July forecast. Due to weak service spending during the summer.
The central bank also lowered its forecast for core consumer price inflation in the fiscal year to a decline of 0.6% from the 0.5% decline in the July forecast.
The report said that Japan's economy in general is likely to improve with the repercussions of the Coronavirus pandemic gradually diminishing, but the pace of recovery will be moderate.
