Japan PM Kishida says trillion-yen tax hike needed to pay for defense

Japanese media with the report:

• Prime Minister Fumio Kishida is calling for a tax hike of 1 trillion yen ($7.4 billion) by fiscal 2027 to pay for Japan’s massive defense buildup.
• Now comes the hard part for the government: choosing which tax to increase, where to set the new rate and what the time frame will look like.
• But the largest faction in the ruling Liberal Democratic Party once led by the late Shinzo Abe is not about to make that process easy. Seiwa Kai members expressed staunch opposition to the hike at a meeting on Dec. 8.

A hefty tax increase is higher fiscal policy (all else remaining equal) - its still hard to see how monetary policy gets tightened in Japan for now.

jpy JPY The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by Read this Term