Japan to slash budget
Bank of Japan Governor Haruhiko Kuroda speaks to the Press at the BOJ headquarters in Tokyo yesterday after a two-day policy meeting. The move – amounting to an average reduction of more than 4 percent of current annual spending – comes days after the International Monetary Fund warned again over Tokyo’s borrowings. The budget pledge was outlined in the government’s mid-term fiscal plan, which called for US$83 billion to be lopped off Tokyo’s deficit between April 2014 and March 2016.
The country has not faced a public debt crisis like the kind seen across the eurozone, however, largely because most of its low interest rate debt is held domestically rather than by international creditors. But the IMF and others have warned over Tokyo’s ever-increasing debt levels, saying it must follow through on key fiscal and structural reforms to the economy.
Abe’s hand-picked governor at the Bank of Japan also joined the chorus of voices over the debt problem yesterday, saying the central bank’s huge stimulus drive could “diminish without fiscal reforms”.... Read the full, comprehensive news article and discuss at The Herald