Japan to Set Economic Stimulus Plan Amid BoJ Coordination

2025-11-10 01:25 By Farida Husna 1 min. read

The Japanese government is expected to finalise an economic stimulus package on November 21, marking Prime Minister Sanae Takaichi’s first major policy initiative since taking office last month.

According to a draft outline seen by Reuters, the package will urge the Bank of Japan to focus on achieving strong economic growth accompanied by stable prices, underscoring Takaichi’s preference for keeping interest rates low to support a fragile recovery.

“It is extremely important for monetary policy to be guided in a way that achieves strong economic growth and price stability,” the draft said.

The plan will include measures to ease the burden of rising living costs, boost crisis management and growth investment, and strengthen Japan’s defence capabilities.

The government also pledged to coordinate closely with the BoJ to prevent a return to deflation and sustain growth.

The Nikkei reported the package will feature tax cuts targeting investment in 17 key industries.



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