Japan unveils new spending package
21-12-2008
The Japanese cabinet has approved another US$54 billion package of spending, to try to ease the recession. It is the second extra budget approved by MPs and is designed to help finance tax cuts for homeowners, loans to small businesses and help laid-off workers. Recently, the government increased its economic stimulus plan by $255 billion. The Bank of Japan cut its benchmark interest rate to 0.1 percent, on Friday in a bid to kick-start the economy. The bank also announced that it would increase its purchase of Japanese government bonds. The government has forecast zero growth in the year ending March 2010.
