TOKYO, Feb 26 (Reuters) - Japan’s government must avoid loosening fiscal policy too much and issuing massive bonds on the assumption the central bank will keep monetary policy ultra-loose, Finance Minister Taro Aso said on Friday.
“Once Japan loses market trust over its finances, it will lose trust over its currency. In the worst-case scenario, we could see excessive inflation and sharp yen declines that would have an immediate, devastating impact on people’s livelihood,” he told parliament. (Reporting by Leika Kihara Editing by Chang-Ran Kim)
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