After receiving a strong sign of confidence following the upper house election victory, leaks of the newly proposed fiscal stimulus package indicates that the program will number approximately JPY 20 trillion with a tremendous allocation of that program devoted to infrastructure spending. While the measures have not yet been approved by the cabinet, a rubber stamp that is not anticipated before early August, the fiscal stimulus amount matches estimates that were nearer to the higher end of the range anticipated by analysts and economists. Although counteracting the uncertainty that has arisen from the British referendum decision was cited as a major influence for how the plans have evolved, the main purpose of this fiscal package remains domestic, with attention directed towards improving disaster resilience and local transportation systems. The Yen has weakened in response to stimulus expectations, with GBPJPY retreating modestly from intraday highs.
Japan Plans to Double Early Stimulus Predictions
Daily Analysis - 21/07/2016