Japan’s LDP Chief Kishida: Need to consider cash payouts, address tax and social security as part of stimulus

The government will need to consider cash payouts and address the tax and social security as part of the stimulus package, said Fumio Kishida, Chairman of Japan’s ruling party, Liberal Democratic Party (LDP).

Kishida declined to comments on the size of the stimulus package on coronavirus as it should be decided by Prime Minister (PM) Abe.

Further comments

To receive opinions from each division of ruling party and compile them for econ stimulus package on March 30.

Would need to brace for various impact if Olympics postponed.

Meanwhile, PM Abe said, “will take bigger economic steps if needed in response to coronavirus than those taken during 'Lehman shock.”

Additional quotes

Will keep options wide open on what steps to take to support economy including on fiscal, monetary and tax measures.

Will consider various economic steps related to fiscal policy and taxes for coronavirus impact.

Sales tax is required for free education so as much as possible we need it.

USD/JPY implications

The Japanese yen shrugs-off the above comments, as it reverses early gains against the US dollar amid a broad recovery seen in the buck.

USD/JPY now trades at 110.12, having bounced-off a daily low reached at 109.67.