TOKYO (Reuters) -Japanese Prime Minister Fumio Kishida’s cabinet is set to approve a scheduled economic stimulus package on Nov. 2, later than the previously planned late October timeframe, two government and ruling party officials said on Thursday, confirming an earlier report by Kyodo news agency.
Kishida has said the package will include measures to cushion the blow to households and retailers from cost-push inflation, such as an extension of subsidies to curb gasoline and utility bills.
The prime minister is expected to ask officials in the ruling coalition as early as Friday to consider a temporary cut to income tax, public broadcaster NHK reported.
The delay in approving the package could affect the Bank of Japan’s new inflation forecasts, due at its Oct.
30-31 meeting, as the length of extension in the subsidies will not be clear by the time the central bank board meets.
(Reporting by Takaya Yamaguchi and Kantaro Komiya; Writing by Leika Kihara; Editing by Kim Coghill and Muralikumar Anantharaman and Miral Fahmy)
