Japanese Prime Minister Kishida candidate calls for $ 270 billion plus stimulus package – media

TOKYO, Sept. 7 (Reuters) – Fumio Kishida, a serious contender to succeed Yoshihide Suga as Japanese prime minister, has called for a more than 30 trillion yen ($ 273 billion) stimulus package to cushion the economic blow from the coronavirus pandemic, according to a reported magazine.

Suga’s shocking announcement on Friday that he was stepping down opened a leadership race for the ruling Liberal Democratic Party (LDP), slated for September 29, with a range of candidates – including Kishida – considering running.

Kishida also told Diamond magazine that if he became prime minister he would ask the Bank of Japan to maintain its 2% inflation target and massive stimulus package.

“We can’t touch it right now. Removing the target could send the wrong message to the markets,” Kishida said of the BOJ’s price target, which critics say is unrealistic for an economy. long suffering from near zero inflation.

“We need to support the economy with large-scale monetary easing and fiscal stimulus to protect people’s lives from the pandemic,” he said in an interview on Monday night.

The remarks came after Kishida told a press conference on Friday that the government had to compile a spending program worth “several tens of billions of yen”, without giving a precise figure.

Kishida said that as part of his plan, the government would compile a supplementary budget of more than 30 trillion yen which would be financed through the issuance of bonds, according to the magazine.

“Kishida stresses the need for a targeted package in the short term, a view shared by another strong candidate Taro Kono,” said Chotaro Morita, strategist at SMBC Nikko Securities, adding that 30 trillion yen will be the ballpark figure. for any new stimulus, it doesn’t matter who becomes the next prime minister.

Sanae Takaichi, who also expresses interest in running and has the backing of former Prime Minister Shinzo Abe, called for a freeze on a balanced budget target until the 2% inflation target of the BOJ is reached.

($ 1 = 109.8200 yen)

Reporting by Leika Kihara; Editing by Chang-Ran Kim and Lincoln Feast.

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