The Japanese prime minister Shinzo Abe said that the Japanese government is ready to implement fiscal stimulus measures to aid the Japanese economy from the adverse effects of the coronavirus outbreak.
“We’ve already compiled a spending package to forestall various risks," said Abe during a speech he gave in front of the Japanese parliament, “We’ll scrutinize the impact of the coronavirus on the global and Japanese economies. If further steps are deemed necessary, we will take action without hesitation,” he continued.
The Japanese government is expected to implement a US 2.5 billion fiscal package. The funds are being taken from the 2019 fiscal reserve.
"We will decide whether we will use all of the funds when we finalize the details of the package on March 10. We'd like to make full use of it as much as possible," added Abe.
There are already 1000 infection cases confirmed in Japan, the Japanese government asked schools to remain closed till the end of the spring break. Many criticize the Japanese government's undue delay in responding to the outbreak.
By 9:50 GMT the US dollar went down against the Japanese Yen by 0.28 percent, falling to the 108.00 level. Conversely, the Euro fell by 0.35 percent against the Yen, at 120.14.
Carney: BoE Will Ensure all Necessary Contingency Measures Are in Effect
Meanwhile, the Bank of England's governor Mark Carney pledged that the Bank of England will ensure all necessary contingency measures are in effect, given the current coronavirus outbreak. He added that the institution will look at aggregate demand consequences of the virus outbreak and that cash rates are likely to remain low for some period of time.
After Carney's speech, the Bank of England's policymaker Silvana Tenreyro said that the persistent weakness in price pressures relative to labor costs is a downside risk regarding the MPC’s inflation forecast.
By 10:07 GMT the Pound Sterling went up by 0.39 percent against the US dollar, hitting the 1.2800 level.