Japan’s cabinet approved its annual economic and fiscal policy plan on Tuesday,
adding a footnote affirming that specifics of monetary policy tools are for the
Bank of Japan to decide and that its independence must be respected — a key
insertion to the June 30 draft. The plan does not include Prime Minister
TAKAICHI’s pledge to suspend or sharply cut the food sales tax, a proposal that
raises questions about how the government would fund the measure without
worsening fiscal positions. The document says the government will determine
related policy in early August.
