Japan Approves ¥21.3 Trillion Stimulus Package with Over Half for Inflation Relief

Japanese Prime Minister Sanae Takaichi's cabinet approved a ¥21.3 trillion economic stimulus package on November 21, with ¥17.7 trillion (approximately $112 billion) in general account spending representing the largest supplementary budget since the pandemic, the Cabinet Office said. Over half of the funds are dedicated to price relief measures, responding to inflation that has remained at or above the Bank of Japan's 2% target for 43 consecutive months through October, the longest streak since 1992. The stimulus has contributed to the yen falling to a 10-month low and super-long-term government bond yields rising to record highs. The cabinet plans to approve the supplementary budget as early as November 28 and aims for parliamentary passage by year-end.