Japan unveils $275 billion stimulus package

Japan has responded to the global credit crunch today by announcing a 26.8 trillion yen ($275 billion) stimulus package that is designed to assist homeowners and businesses, according to published reports. It is Japan’s second stimulus package in as many months. The nation announced a 11.7 trillion yen ($107.5 billion) spending plan in late August in response to its worst inflation levels in more than a decade (InvestmentNews, Aug. 29). The new stimulus package includes 5 trillion yen ($51 billion) in new government spending along with tax breaks on mortgages and relief for small firms that are suffering as a result of the credit crunch. The plan comes a day before the Bank of Japan is scheduled to meet and consider cutting its key interest rates from an already low 0.5%.