The Japanese government opposes financing to tax cuts with debt issues

Prime Minister Shghero Ishiba said on Monday that Japan would not resort to tax cuts through additional loan issues and rejected political pressure to reduce economic policy before the Senate elections next July and not funded Japan’s additional debt issues.

“Japan is looking at interest rates, and its financial situation is not good,” said Ishiba to Parliament. The Central Bank has raised interest rates with increasing interest rates, and warned about high costs to finance the country’s huge debts, and continued:

As the ambiguity of American customs duties on food prices and economic estimates that adversely affect the consumption, the Ishiba verdict and the increasing calls from the opposition party representatives have increased and the consumption tax rate in Japan is 10 percent.

Finance Minister Catsonobo Kato is now trying to maintain market confidence in its economy, although there is no difficulty in raising funds to Japan by issuing debts. “The loss of market confidence in our money can lead to a sharp increase in interest rates, weak yen and high expansion,” Cotto said in the same parliamentary session.

As a result, the bank of Japan’s deputy governor Shinichi Oshida said on Monday that the central bank will continue to increase interest rates if economic growth is accelerated, and basic inflation is going to reach 2 per cent.

“There is serious uncertainty about the opportunities for every country’s trade and its consequences,” Oshida told Parliament. Therefore, we will determine whether the economy and prices agree with our expectations without prior expectations. ”

After the stimulus ended over a decade last year, the Bank of Japan has raised short -term interest rates to 0.5 % in January and pledged to increase the cost of borrowing its 2 % target permanently if inflation is in the right way.

The Japanese economy will decline 0.7 percent with an annual rate from January to March, which is the first contraction in a year, which confirms the fragile of recovery, now threatening US President Donald Trump’s trade policies.

The Bank of Japan, which runs half of the existing Japanese government bonds, gradually reduces the purchase of bonds, which increases the cost of funding for bond returns and government loan. The long -term Japanese government bond revenue has gradually increased since April, despite the stability of revenue with different qualifications with different merits, the economic situation of Japan represents the market assessment.

In trading on Monday, Moody’s credit rating agency recognized the impact of the high income of the US Treasury Bonds after the reduction of the United States, and the Japanese government’s revenue on Monday increased.

Japanese government bond revenues rose 2.5 basis points to 2.5 basis points to 1.475 percent, and bond returns increased to 0.715 percent over one basis points for two years, and the five -year bond was 1.5 basis to 0.995 percent.

“American bond revenue in Asian transactions on Monday has increased strongly, which has led to further sales in the future agreements of Japanese government bonds.”

The Japanese government bond futures fell to 10 years to 139.22, with 139.37 on Monday. Generally, futures prices go back with the revenue of Japanese government bonds.

In the stock market, the US government credit rating agency fell on Monday as the Japanese Nikki index fell on Monday, which led to the high value of the yen, with the reduction of concerns about investors’ possibility from American assets.

The Nikki Index closed 0.68 percent at 37.498.63 points. The wide topics index fell 0.08 percent to 2.738.39 points.

“The market has warned Moody’s credit rating agency for the United States,” said Tokai Tokyo Intelligence Laboratory Market analyst Shataro Yasuda. They are worried that this will lead to widespread sales for American assets, and the time of credit rating is bad. At the time of the local stock markets replaced their losses from Trump’s announcement of customs duties.

“If he sells the US dollar, this will lead to an increase in the value of the yen, which is bad for Japanese exporters,” said Shoischi Arisawa, General Manager Manager of the Investment Research Department of Iway Cosmo Securities.