Japanese Chief Cabinet Secretary Yoshihide Suga looks set to become prime minister this week, after garnering the backing of most of the ruling Liberal Democratic Party's (LDP) factions to win a party leadership election slated for Monday.
Incumbent premier Shinzo Abe announced last month he was resigning because of poor health. The winner of the party election is virtually assured of becoming prime minister because of the LDP's parliamentary majority.
A longtime lieutenant of Abe, Suga aims to continue the incumbent's hyper-easy monetary policy, stepped-up government spending and structural reforms, dubbed "Abenomics".
Suga also plans to maintain Abe's policy of prioritising economic growth over efforts to fix the country's tattered finances. He said on Sunday there was no limit to the amount of bonds the government can issue to support an economy battered by the coronavirus pandemic, and indicated he could look to a third extra budget to fight the economic downturn.
"Only when we have economic growth can we push through fiscal reform," Suga said. Suga has voiced his readiness to have the central bank take additional easing steps to protect jobs.
He opposes lowering the 10% sales tax rate. Some lawmakers have proposed cutting the tax to reduce the burden of the pandemic on households.
Continuity and reforms: Key policies of Japan PM hopeful Suga
FE Team | Published: September 13, 2020 23:49:24
Continuity and reforms: Key policies of Japan PM hopeful Suga
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