Japan's government to pledge 'nimble' fiscal action in policy guidelines

TOKYO, May 28 (Reuters) - Japan's government will pledge in this year's policy guidelines to take "nimble policy action" as U.S. tariffs and high inflation impact household finances, according to a draft seen by Reuters.
The statement, to be included in Japan's annual economic and fiscal policy guidelines in June, suggests the government could consider compiling a supplementary budget later this year, depending on economic and price developments.
The government also plans to reiterate its expectations for the Bank of Japan to achieve the 2% price target in a sustainable and stable manner.
The draft guidelines, which form the basis for budget planning, will note that, although the Japanese economy has been recovering modestly, downside risks posed by the U.S. tariffs and rising consumer prices "need to be closely monitored."
The pursuit of fiscal discipline should not narrow policy options, the draft said, giving room for swift policy responses such as stimulus measures when necessary.
The government will mobilise all measures to achieve wage growth to ensure the transition to a growth-oriented economy driven by wage hikes and investment, the draft said.
The draft stated the BOJ is expected to achieve the 2% inflation target in a sustainable and stable manner through appropriate monetary policy in response to economic, price, and financial conditions.
A key Japanese government economic panel, the Council on Economic and Fiscal Policy (CEFP), will meet on June 5 to discuss the draft guidelines and finalise them on June 13.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Daily Mirror

34 minutes ago

• Daily Mirror

Labour industrial strategy's £275m boost 'backs young people in whole country'

The long-awaited strategy will include a £275million boost to skills training for the one in seven young people out of work and education - backing British talent instead of importing workers from overseas Labour's long-awaited industrial strategy will prove the Government is 'on the side of working people' across the whole country the Industry minister vows ahead of its publication on Monday. The strategy is intended to boost key sectors of the economy for the next decade, with advanced manufacturing, clean energy and defence among the sectors to see increased focus. ‌ Today, Business Secretary Jonathan Reynolds vowed to 'power the industrial strategy by investing in working people' ‌ He promised a £275million boost to skills training for the one in seven young people out of work and education - backing British talent instead of importing workers from overseas. And writing for the Sunday Mirror Sarah Jones, the Industry Minister said the strategy would not just focus on London and the south east. 'From Belfast to Barrow, Derby to Dundee, our modern Industrial Strategy will build on the world-leading strengths of our nations and regions to turbocharge investment into our communities, raising wages and living standards for working people,' she wrote. 'We're not just putting a sticking plaster over the cracks of the economy. We're setting out a plan to fix the problems that have plagued us for years.' The training cash will fund the creation of new 'Technical Excellence Colleges' to provide cutting-edge courses in defence and engineering. It's been targeted to address the UK's skills gaps which leave businesses struggling to find people with the talents and skills they need. ‌ 'To make Britain the best place in the world to do business, we also need the best workforce in the world with the right skills and expertise to thrive,' Mr Reynolds said. 'Where past governments have watched from the sidelines as British industry has faced under-investment and opportunities have been shipped overseas, this government is leading the way, and our modern Industrial Strategy is a downpayment on a decade of renewal.' The UK's last industrial strategy was in 2017, when the Tories published a four-year plan ending in 2021. We're giving young people a chance to succeed By SARAH JONES, Minister for Industry This government is on the side of working people. And our modern Industrial Strategy, which we will publish tomorrow, will prove that beyond doubt. For the past 14 years, governments have sat on the sidelines watching British industry struggle – no direction, no support and no strategy. ‌ Neglecting our world-class industrial sectors and leaving workers in the lurch, while only worsening the gap between rich and poor and extending the north-south divide. Even before we entered Government we have been listening to industry and knew bold action was needed. Working hand in hand with industry and the workforce we will take the action needed to keep jobs and investment on our shores for decades to come. And the UK means the whole of our country: not just London or the Southeast. ‌ From Belfast to Barrow, Derby to Dundee, our modern Industrial Strategy will build on the world-leading strengths of our nations and regions to turbocharge investment into our communities, raising wages and living standards for working people. We're not just putting a sticking plaster over the cracks of the economy. We're setting out a plan to fix the problems that have plagued us for years. Currently one in seven young people are unemployed or out of education. We're giving them the chance to succeed by creating thousands of new training opportunities and transforming Britain's skills system, with more than £275 million in new investment to help British workers secure good, well-paid jobs in the industries of tomorrow. ‌ This will fund new training, short courses and other education opportunities right across the country in sectors like defence, AI, clean energies and advanced manufacturing. These are sectors where the UK is already world-leading, and which are expected to add £158 billion to our economy by 2035 and create an astounding 1.1 million new, well-paid jobs. Our skills overhaul will also set up new Technical Excellence Colleges across the UK to help train thousands of new skilled workers by 2029, in careers like engineering, programming and IT systems, helping Britain to stay competitive on the global stage. But that's just the tip of the iceberg. Tomorrow, our new Strategy will set out how we'll invest billions in our high-growth sectors in every part of the country: creating thousands of secure, well-paid and high-skilled jobs, backed by employment rights fit for a modern economy. The number one mission of this government's Plan for Change is growth, and putting more money in working people's pockets. And that's exactly what our modern Industrial Strategy will do.

South Wales Argus

35 minutes ago

• South Wales Argus

Teachers expected to 'endure violence,' says union

The union believes that the Welsh Government's 'neglect' is causing a crisis in education. This weekend, members will convene in Cardiff to establish a campaign agenda for the year. Discussions will centre on safeguarding the profession through better recruitment and restoring pay, addressing learner behaviour, and the need for a sincere social partnership. The government has proposed a four per cent pay rise, falling short of the IWPRB's 4.8 per cent recommendation. There were 6,446 recorded violent incidents against school staff in 2023-24. Matt Wrack, acting general secretary, said: "If the Welsh government wants to build a world-class education system, it's time to start investing in teachers." Neil Butler, national official for Wales, said: "This government, it seems, is sleepwalking towards crisis. "While their workloads increase and their pay stagnates, teachers are expected to endure violence in classrooms and accommodate unrealistic qualifications reform."

Western Telegraph

35 minutes ago

• Western Telegraph

Windrush campaigners urge the Government to save Notting Hill Carnival

The west London carnival is in jeopardy, its chairman Ian Comfort said in a letter on Wednesday, when he asked Culture Secretary Lisa Nandy to provide urgent funding to save the event. Jacqueline McKenzie, a campaigner and human rights lawyer who helped victims of the Windrush scandal, said the carnival holds 'huge national and international significance'. 'The Government needs to recognise this and act urgently to protect it,' Ms McKenzie said. In the late 1950s, Notting Hill became home to many people from the Caribbean who arrived in Britain on Windrush and accompanying ships, and the carnival was founded by pioneers of that generation. Ms McKenzie said the carnival being at risk 'adds insult to injury' for victims of the Windrush scandal. 'It should not be lost on us that these funding concerns coincide with Windrush Day on Sunday,' she said. 'To see this celebration in jeopardy whilst so many of the Windrush generation continue to fight for justice following the Home Office scandal only adds insult to injury. 'Carnival embodies the fundamental role of Black and Caribbean communities in Britain, and the Government should be upholding the Windrush legacy instead of undermining it.' The carnival attracts around two million people over the August bank holiday, and Susan Hall, leader of the Conservatives on the London Assembly, previously said the event was a 'victim of its own success' and a 'disaster waiting to happen' because of the large number of attendees. City Hall said it has been working with partners to ensure the safety of carnival-goers, which it described as 'paramount'. Professor Patrick Vernon, a cultural historian and Windrush campaigner, said: 'Notting Hill Carnival is far more than a street event — it is a vital cultural institution with both national and international significance. 'As the second-largest carnival in the world, second only to Rio de Janeiro, it underscores London's position as a leading global capital of diversity, creativity and cultural exchange.' Professor Vernon campaigned for a national Windrush Day following the 2018 scandal when it was revealed thousands of British people, mainly of Caribbean origin, were wrongly classed as illegal immigrants – with many deported while others faced difficulty securing work, accessing healthcare or housing. Jacqueline McKenzie said the carnival 'embodies the fundamental role of Black and Caribbean communities in Britain' (PA) 'The injustice faced by the Windrush Generation in recent years makes the threat to Notting Hill Carnival all the more painful,' Professor Vernon said. 'It is a celebration born of resistance, resilience, and unity – a legacy that should be upheld, not undermined. To allow this cornerstone of Black British identity to fall into jeopardy is to further betray the communities who have already given so much. 'As we approach the 70th anniversary of this extraordinary event, we are reminded that Notting Hill Carnival represents the very best of Britain: unity in diversity, creativity in adversity, and joy in community. Now more than ever, these are values worth defending.' Glenda Caesar, director of the Windrush National Organisation, also urged the Government to step in to save the event, adding: 'In the face of historical and ongoing injustices experienced by people of colour, the carnival stands not only as a celebration of resilience, heritage and identity but also as a powerful symbol of unity and inclusion. 'Supporting this event affirms the UK's commitment to embracing diversity, acknowledging its multicultural roots, and fostering a society where all communities feel seen, valued and empowered.' The Department of Culture, Media and Sport has been contacted for comment.