Fri, Dec 21, 2012 - Page 15 News List

Under pressure BOJ delivers stimulus

POLITICAL PROMISES:Despite warnings that inflationary measures may be counter-productive, Japan’s next prime minister vowed to keep bold stimulus election promises

Reuters, TOKYO

The LDP and its coalition partner, the New Komeito Party, together won a two-thirds majority in the powerful lower house that would allow them to overrule parliament’s upper house in most matters, including on any bill to revise the law guaranteeing the central bank’s independence from government interference.

Abe, who plans to compile a large stimulus package to revive the economy, may use that threat to nudge the central bank into buying bonds more aggressively to finance the costs.

Shirakawa’s five-year term as BOJ governor ends in April next year.

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