Japan gains 195 trillion yen in fiscal room as inflation erodes debt value

Japan has gained about 195 trillion yen in fiscal room as inflation erodes the real value of its debt.
Former Bank of Japan official Tsutomu Watanabe gave the estimate at an event in Tokyo on Wednesday.
He said the gain comes from a lag between rising market rates and what the government actually pays.
Watanabe called it a one-off bonus from moving to 2% inflation, and said it must be used wisely.

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