TOKYO Dec 17 Japan's next Prime Minister Shinzo
Abe said on Monday an extra budget his government plans to
compile will be large in size given the country's output gap,
which is behind deflation.
He also told a news conference the government will reinstate
the Council on Economic and Fiscal Policy, a key panel that was
in place when his Liberal Democratic Party was previously in
power, and will ask the governor of the Bank of Japan to attend
He said he will form his cabinet on Dec. 26, and once it is
created he will instruct ministers to work with the BOJ in
issuing a joint statement setting a 2 percent inflation target.
He also said he wants the central bank to take into account
the fact that the public supported his views on monetary policy
when it hold a policy meeting on Dec 19-20.
The conservative LDP surged back to power in an election for
parliament's lower house on Sunday, just three years after a
devastating defeat, giving Abe a chance to push his hawkish
security agenda and radical economic recipe.