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Japan would-be PM's plan 'reckless': Business chief

Published on Nov 27, 2012 12:58 PM
 

TOKYO (AFP) - Plans by Japan's prime ministerial front-runner to force the central bank to buy government bonds have been criticised as "reckless" by the head of a major business lobby.

Opposition leader Shinzo Abe called for "unlimited" central bank easing and told supporters earlier this month he would make the Bank of Japan participate in his bond-buying scheme - effectively printing money to generate inflation.

Japan has been mired in deflation for years, a situation that discourages consumers from spending in the knowledge that products will be cheaper in the future, sapping demand and dissuading firms from investing.

But the plan has been criticised from all quarters and on Monday, Mr Hiromasa Yonekura, the chairman of Keidanren (Japan Business Federation), a habitual ally of Abe's Liberal Democratic Party, joined the chorus.

 
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