Japan’s new finance minister has signalled that the government will borrow to boost the struggling economy as the prime minister, Shinzo Abe, unveiled a “crisis beating” cabinet yesterday.
At a press conference following his appointment, Taro Aso announced that he would issue bonds and lift a cap on new debt for the 2012 fiscal year.
“We will not stick to the debt cap of Y44tn ($513bn) [for the year through to March],” Mr Aso said. The debt limitation was introduced by the previous Democratic party administration, which was defeated in a landslide by Mr Abe’s Liberal Democratic party. The yen fell to a two-year low against the dollar yesterday, in anticipation of inflationary steps by Mr Abe’s government and potential monetary easing by the Bank of Japan.