LDP policy chief hints at shift in priorities under Abenomics

Tokyo

THE chairman of the ruling Liberal Democratic Party's policy research council on Tuesday called on Tokyo to accelerate structural economic reform if Abenomics policies are to succeed.

Mr Toshimitsu Motegi, speaking on the eve of a Bank of Japan (BOJ) meeting which could result in a shift away from a reliance on monetary easing, said that although the three "arrows" of Abenomics are working "simultaneously", structural economic reforms must be speeded up.

Opinions are divided on whether the results of a "comprehensive review" of the central bank's policies, due to be presented at the BOJ's Policy Board meeting, will favour less aggressive monetary easing measures.

But analysts said that Mr Motegi's remarks suggested that the government recognises the need for a shift in the relative priorities under Abenomics, the three "arrows" of which are monetary expansion, fiscal stimulus and s…