Japan OKs ¥18.6T stimulus package

|By:, SA News Editor

As flagged, Japan's cabinet has approved an ¥18.6T ($182B) stimulus plan to offset a hike in sales tax that is due to go into effect in April.

However, there's a bit of smoke and mirrors in play, as much of the package includes investment that was already scheduled.

The scheme has raised concerns that Japan remains addicted to using stop-gap measures to run economic policy.

Still, the cabinet expects the measures to add 1% point to GDP and create around 250,000 jobs, although economist Hiroshi Miyazaki isn't as optimistic.

The yen is -0.3% at ¥102.05 and the Nikkei -1.5%.

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