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Japanese chief cabinet secretary Yoshihide Suga, a favorite to be the next prime minister, said he was looking for the central bank to continue its ultra-soft financial policy while the economy is still grappling with the effect of the coronavirus pandemic.
In an interview published Saturday in the Nikkei newspaper, Suga also said he would compile some other economic recovery plan until the end of this year to “end the pandemic and take the economy to a new level. “
“I have strong control over financial policy,” Suga said of BOJ Governor Haruhiko Kuroda, who took ambitious easing measures that were part of Prime Minister Shinzo Abe’s “Abenomics” stimulus strategy.
“I need to postpone (the ambitious flexibilization steps),” he quoted the newspaper.
These comments expect Suga to continue Abe’s many pro-growth economic policies as the pandemic adds to the pain of an already in deep recession.
Suga told Nikkei that it would take steps to revitalize small businesses by consolidating and increasing competitiveness.
He also hoped to create a new government firm to publicize the digitization of government facilities and industries such as health, as delays on this front have slowed the bills of companies and families affected by Covid-19.
“I know there may be resistance, but we want to move forward on this,” Suga said of her plan to allow clinics to offer medical treatment online permanently.
Lately, Japan allows online remedy only on a transitional basis to accommodate patients with difficulties getting to the hospital due to Covid-19.
Suga is expected to win the leadership elections of the Liberal Democratic Party (LDP) on September 14, following Abe’s resolution to resign. The winner is practically guaranteed to the Prime Minister due to the PLD’s parliamentary majority.
Markets have been full on the assumption that Suga, through an appropriate prime minister, could call snap elections in the coming months to solidify his political grip.
“What other people need to the fullest about the government is to confront the pandemic and create a life-making environment,” Suga said on a television show, when asked if she would call early elections if she has become Japan’s new leader.
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