TOKYO (Reuters) – Japanese Finance Minister Taro Aso said on Friday that there was no immediate need to compile stimulus measures to counter the impact of a national sales tax hike, which took effect this week.
Speaking to reporters after a cabinet meeting, Aso said corporate earnings and household incomes were solid, although U.S.-China trade frictions warranted attention.
Also on Friday, Economy Minister Yasutoshi Nishimura told reporters it was necessary to carefully watch consumption trends as there are worries the hike may weigh on consumer sentiment.
Japan increased the sales tax to 10% from 8% on Tuesday. The last time it was raised in 2014, a last-minute buying spree and a subsequent pullback in demand caused a big downward swing in consumer spending.
Reporting by Tetsushi Kajimoto & Daniel Leussink; Editing by Chang-Ran Kim & Kim Coghill
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