Japanese PM contender and Chief Cabinet Secretary Hayashi:
- BOJ is conducting monetary policy in way that does not deviate much from Govt thinking
- Japan’s past aversion to strong yen has diminished, when asked about risk Fed rate cut prospects could push up yen vs dollar, hurt Japan’s export-reliant economy
- Weak yen, coupled with rising oil costs from Ukraine war, has caused cost-push inflation
- If chosen as premier, will compile economic package to cushion blow from rising living costs, spending for disaster relief
- Size of spending package must take into account Japan’s ‘quite small’ output gap, avoid issuance of deficit-covering debt
