Japan’s cabinet to approve economic package on Nov 2

A tour guide raises an Italian flag as she leads a tourist group from Italy, at Senso-ji temple, at Asakusa district, a popular sightseeing spot, in Tokyo, Japan, Oct 19, 2022. REUTERS/Issei Kato

TOKYO  – Japanese Prime Minister Fumio Kishida’s cabinet is set to approve a scheduled economic stimulus package on Nov. 2, later than the previously planned late October timeframe, two government and ruling party officials told Reuters on Thursday.

Kishida has said the package will include measures to cushion the blow to households and retailers from cost-push inflation, such as an extension of subsidies to curb gasoline and utility bills.

The delay in approving the package could affect the Bank of Japan’s new inflation forecasts, due at its Oct. 30-31 meeting, as the length of extension in the subsidies will not be clear by the time the central bank board meets.

Kyodo news agency reported earlier that cabinet approval of the package will likely be delayed until Nov. 2.