Japan unveils new stimulus plan — urging BOJ to focus on “growth & price stability”

Japan’s Prime Minister Sanae Takaichi is preparing a major economic stimulus package aimed at encouraging the Bank of Japan (BOJ) to prioritize strong economic growth and price stability.

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The draft plan includes household cost-of-living support, tax incentives for 17 strategic industries, and increased spending on economic security and national defense.

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According to the outline, the government will work closely with BOJ to avoid falling back into deflation, while steering Japan toward sustainable long-term growth.

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The full plan is expected to be finalized by November 21, marking the first major policy direction under Takaichi’s administration — signaling a shift toward pro-growth and investment-driven economics.

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TrendPro Insight:

If BOJ continues its ultra-loose monetary policy, the Japanese yen (JPY) could weaken further, creating trading opportunities in pairs like USD/JPY and EUR/JPY, which are expected to show high volatility in the short term.

Conversely, if the stimulus package succeeds, Japanese equities may see a renewed rally heading into 2026.

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📊 Key factors to watch:

- Upcoming BOJ policy meeting and Governor Ueda’s statements

- Movements in USD/JPY and Japan’s strategic industry stocks

- Global investor reaction to Japan’s new stimulus agenda