Japan¡¯s risk of spurring inflation without boosting the nation¡¯s growth potential is raising the stakes for Prime Minister Shinzo Abe¡¯s next round of economic restructuring measures, due in June.
An economy ¡°with low real growth rates under mild inflation¡± is possible, should the government fail to deliver, Bank of Japan Deputy Gov. Kikuo Iwata said Monday.
Investors are looking for lower corporate taxes, labor-market flexibility and progress on a U.S.-led trade pact as Abe prepares for the next phase of the so-called ¡°third arrow¡± of ¡°Abenomics,¡± economic restructuring to boost long-term growth prospects. Iwata¡¯s comments built on Gov. Haruhiko Kuroda¡¯s calls for the government and companies to do more to boost the nation¡¯s outlook.
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