TOKYO, Sept 2 (Reuters) – Prime Minister Shigeru Ishiba intends to instruct cabinet members this week to prepare a comprehensive economic support plan aimed at mitigating inflationary pressures and addressing challenges posed by tariffs from the U.S. administration, according to the Sankei newspaper citing government insiders.
This initiative follows a coordination meeting between senior officials of the ruling Liberal Democratic Party (LDP) and its coalition ally Komeito, during which both parties emphasized the necessity of rapid policy responses to assist households coping with rising living costs.
The report notes that direct financial disbursements to citizens are under consideration as part of broader inflation relief strategies. Meanwhile, the Yomiuri newspaper mentioned that lawmakers aim to approve a supplementary budget to finance the stimulus during a special parliamentary session scheduled for autumn.
The proposed economic package is expected to include initiatives to stabilize consumer prices and provide relief for domestic firms facing financial strain due to American trade duties.
On the political front, the LDP held a joint session of its parliamentary members to reflect on its recent performance in the upper house elections. Discussions may now turn to whether to accelerate the timeline for the party’s leadership vote.
By advancing an economic response, Ishiba appears to be reinforcing his position as leader and resisting internal pressure to expedite a leadership contest.
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Japan PM to ask ministers to compile economic package, Sankei says
TOKYO, Sept 2 (Reuters) – Japan’s Prime Minister Shigeru Ishiba plans to ask ministers as early as this week to compile an economic stimulus package to address inflation and Trump administration tariffs, the Sankei newspaper said on Tuesday, citing government sources. n nThe plan follows a meeting on Tuesday between the secretaries-general of the Liberal Democratic Party and its coalition partner Komeito, where they agreed on the urgent need for swift measures to help households counter inflation, Sankei said. n nSign up here. n nThe two parties also confirmed they would consider cash handouts as part of inflation relief efforts, Sankei said. n nSeparately, the Yomiuri newspaper reported that the parties hope to pass a supplementary budget to fund the economic package during the extraordinary parliament session this autumn. n nThe package would include measures to counter rising prices and support domestic companies affected by U.S. tariffs, it said. n nOn Tuesday, the LDP convened a joint plenary meeting of both houses to assess its recent defeat in the upper house election. Following the meeting, the party could begin procedures to decide whether to bring forward the leadership election. n nSankei said that by proposing an economic package, the prime minister appears to be reaffirming his commitment to staying in office and countering calls within the party to advance the leadership race.