Japan PM Abe favors looser Debt-to-GDP ratio target

Reuters is carrying the headlines, which says Japanese PM Shinzo Abe is looking to ditch a pledge to balance the budget by fiscal 2020. Abe is in favor of a looser debt-to-GDP ratio target and wants to create “a free hand to delay again the unpopular sales tax hike”. 

Abe, who twice delayed a hike to 10 percent after an increase to 8 percent in 2014, is likely to prioritize economic growth over consolidating the budget… as recommended by the IMF last week.