TOKYO (Reuters) -Japan’s Prime Minister Shigeru Ishiba plans to ask ministers as early as this week to compile an economic stimulus package to address inflation and Trump administration tariffs, the Sankei newspaper said on Tuesday, citing government sources.
The plan follows a meeting on Tuesday between the secretaries-general of the Liberal Democratic Party and its coalition partner Komeito, where they agreed on the urgent need for swift measures to help households counter inflation, Sankei said.
The two parties also confirmed they would consider cash handouts as part of inflation relief efforts, Sankei said.
Separately, the Yomiuri newspaper reported that the parties hope to pass a supplementary budget to fund the economic package during the extraordinary parliament session this autumn.
The package would include measures to counter rising prices and support domestic companies affected by U.S. tariffs, it said.
On Tuesday, the LDP convened a joint plenary meeting of both houses to assess its recent defeat in the upper house election. Following the meeting, the party could begin procedures to decide whether to bring forward the leadership election.
Sankei said that by proposing an economic package, the prime minister appears to be reaffirming his commitment to staying in office and countering calls within the party to advance the leadership race.
(Reporting by Satoshi Sugiyama, Mariko Katsumura and Makiko Yamazaki; Editing by Christian Schmollinger)
