Boosting Spending Takes Priority in Japan’s Leadership Race

Japan's Chief Cabinet Secretary Yoshimasa Hayashi, a candidate in the ruling party's leadership race, emphasized the importance of boosting spending over cutting taxes for economic stimulus. Hayashi refrained from commenting on further interest rate hikes by the Bank of Japan, but noted BOJ Governor Ueda's readiness for such measures under certain conditions.

In the race for Japan's top leadership position, Chief Cabinet Secretary Yoshimasa Hayashi has put forward a clear priority: boosting spending rather than cutting taxes if the economy needs further stimulus.

Hayashi chose not to comment on market expectations regarding potential interest rate hikes by the Bank of Japan (BOJ) and whether he supports such measures.

However, he did acknowledge BOJ Governor Kazuo Ueda's previous statements indicating readiness to increase rates under specific circumstances.

(With inputs from agencies.)