Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Japan PM Kishida vows new steps to beat inflation as approval ratings slide

Economy Oct 03, 2022 03:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Japan’s Prime Minister Fumio Kishida walks on stage during the state funeral of former Japanese Prime Minister Shinzo Abe at Nippon Budokan in Tokyo, Japan, 27 September 2022. Thousands of people are gathered in Tokyo to attend the state fun

By Leika Kihara

TOKYO (Reuters) -Japanese Prime Minister Fumio Kishida on Monday vowed to take steps to cushion the economic blow from rising inflation and boost inbound tourism to maximise the benefits from a weak yen, in a fresh attempt to prop up his sliding approval ratings.

Dealing with rising living costs and the fallout from the yen's recent sharp falls will be among steps the administration will focus on, Kishida said in a policy speech to parliament, stressing that revitalising the economy was his "top priority."

"A big challenge Japan will face toward next spring is the risk of a sharp rise in electricity bills. We will take unprecedented, bold measures that directly ease the burden on households and companies," he said.

The government will compile a package of measures by the end of this month to ease the pain from rising inflation, he added.

A year since becoming prime minister, Kishida has seen his popularity plunge due to revelation of his ruling party's ties with a controversial religious party. He is also under pressure to ease the pain from a weak yen, which boosts exporters' profits but hurts households by inflating the cost of importing already expensive raw material prices.

A poll by the Asahi newspaper showed on Monday that disapproval for Kishida's administration rose to 50% in October from 47% in September, exceeding the approval rate of 40%.

As part of measures to boost the benefits from a weak yen, Kishida said Japan will fully open borders to overseas visitors from Oct. 11 to revitalise inbound tourism.

"We will powerfully pursue policy measures to maximise the benefits of a weak yen," with a target of having foreign tourists spend over 5 trillion yen ($35 billion) in Japan annually, he said.

Attracting chip and battery plants, and promoting exports of agriculture products would also be among the steps Japan would take to gain from the weak yen, Kishida said.

Japan's core consumer inflation hit 2.8% in August, exceeding the central bank's 2% target for a fifth straight month, as price pressure from raw materials and the weak yen broadened.

Keen to keep supporting a fragile economy, the Bank of Japan has shown no intention of tweaking its ultra-low interest rates that are driving down the yen.

The government intervened in the foreign exchange market last month to prop up the yen, and hopes to mitigate households' pain from rising prices with subsidies and pay-outs.

But analysts doubt whether Kishida's spending plan would help revitalise the economy, or his falling popularity.

"Kishida is paying the price for putting off important decisions on economic and energy policies," said Yasuhide Yajima, chief economist at NLI Research Institute in Tokyo.

"His ruling party has failed to push through structural reforms. That's making it difficult to address problems now being exposed by the COVID-19 pandemic and the weak yen."

($1 = 144.7500 yen)

Japan PM Kishida vows new steps to beat inflation as approval ratings slide
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email