USD/JPY price closed the week nearly 1% higher as the price action continues to trade in the sideways manner. Yoshihide Suga, the incumbent Chief Cabinet Secretary of Japan and a clear frontrunner in a race to become the next PM, reiterated that he would prefer to keep Abe’s ultra-loose monetary policy.
Fundamental analysis: Suga to replace Abe?
Yoshihide Suga stated he would prefer the central bank to keep using its ultra-easy monetary policy since the country is still recovering from the COVID-19. Suga is also the current frontrunner to be the next Prime Minister of Japan.
He also said he would think about launching one more stimulus plan by the end of 2020 to “put the pandemic to an end and shift the economy to a new stage.”
“I highly approve of his handling of monetary policy,” Suga said, referring to Bank of Japan’s Governor Haruhiko Kuroda, who is taking easing measures that were part of Prime Minister Shinzo Abe’s “Abenomics” stimulus strategy.
“I want to carry over (the bold easing steps),” Suga added.
Suga’s comments probably mean that he will attempt to keep up Abe’s growth-enhancing economic policies as coronavirus hurt Japan’s economy, which was in recession even before the pandemic.
His plans are focused on helping smaller firms recover by raising competitiveness and promoting consolidation. To this end, a new government would be created to foster digitalisation of government services and other industries like healthcare delays in those sectors have delayed payouts to coronavirus-hit companies and households.
“I know there could be resistance, but we should move forward on this,” Suga commented, referring to his plan to enable clinics to permanently offer online medical treatment services.
Online medical
