Japan extraordinary parliamentary session to discuss plans for an extra budget (and more)

An extraordinary parliamentary session will begin in Japan today, November 28.

Will run to December 21.

The special Diet session is to allow for deliberation on a supplementary budget needed to fund new inflation-relief measures proposed by the government of Japanese Prime Mister Shigeru Ishiba.

Government plans include:

• to provide cash handouts — likely 30,000 yen ($194) each to low-income households exempt from resident tax, and an extra 20,000 yen per child to child-rearing families
• to give subsidies to lower energy prices

Ishiba aims to seek parliamentary approval by the end of the year for the to-be-compiled budget plan for fiscal 2024 through next March to implement the new economic measures.

Bank of Japan Governor Ueda is expected to testify. No date is yet set. Ueda will likely appear before budget or financial committees:

• his testimony would include his views on monetary policy, inflation and the economy
• during a similar last year, Ueda appeared five times

The Bank of Japan meet on December 18 and 19, so any testimony from Ueda will be pored over for clues on a potential rate hike. Current market pricing is around 60% for a hike.

Ueda spoke last week:

• BOJ governor Ueda: We don’t make comments on short-term FX moves

This article was written by Eamonn Sheridan at www.forexlive.com.