Nikkei reviewed the positions expressed by Chief Cabinet Secretary Suga, LDP Policy Research Council Chairman Kishida, and former LDP Secretary General Ishiba on Japan’s monetary easing policy and fiscal rehabilitation. The paper wrote that although all of them believe the BOJ’s monetary easing measures should be maintained for the time being, they have different views about long-term strategies. Suga has suggested the need for additional action while Kishida and Ishiba are cautious about the “side effects” of the current easing steps. Concerning fiscal rehabilitation, Suga gives priority to economic growth over fiscal reconstruction, while Kishida and Ishiba stress the need to restore the nation’s fiscal health.
In related stories, all national dailies wrote that Suga said in an appearance on TV Tokyo on Thursday that Japan’s consumption tax may need to be raised beyond the current 10% in the future. He reportedly said: “If we think about the future, we’ll have no choice but to raise the rate again after carrying out thorough administrative reforms. No matter how hard we try, it will be impossible to prevent Japan’s population from shrinking.”