Japan’s government agreed on Friday to spend $490 billion on stimulus measures, a move by its prime minister to boost an economy battered by coronavirus restrictions and by a supply chain crunch that has affected the country’s largest manufacturers, the New York Times reported. Japan announced a partial easing of border restrictions this month and has lifted virtually all restrictions on its economy amid a falling virus caseload. And its rate of fully vaccinated people — 76 percent of the population, according to a New York Times tracker — is one of the highest among rich nations.

Bank of Japan Governor Haruhiko Kuroda expects consumer inflation to accelerate to around 1% in the first half of next year as the economy recovers to pre-coronavirus levels, voicing hope for a consumption-driven recovery, Reuters reported. But with inflation still short of its 2% target, the BOJ will maintain its "powerful" monetary easing and stand ready to ramp up stimulus, even as other central banks head for an exit from crisis-mode policies, Kuroda said on Monday.

Japan is considering an economic stimulus package worth more than 30 trillion yen ($265 billion) aimed at easing the pain from the COVID-19 pandemic, a plan that would require issuing new debt, Kyodo news reported, according to Reuters. Part of the spending will come from funds carried over from last year's budget, Kyodo reported late on Sunday. A government panel tasked with drawing up a blueprint for Prime Minister Fumio Kishida's so-called new style of capitalism is expected to issue proposals on Monday that will lay the backbone of the planned stimulus package.

Japan said it would allow short-term business travelers and foreign laborers to enter the country, responding to calls from companies that said they feared falling behind the West, the Wall Street Journal reported. The decision followed a sharp fall in new infections in Japan, which is reporting only a few hundred new Covid-19 cases a day. More than 70% of the population is fully vaccinated. The loosening up puts Japan closer to the rules in the U.S.

Japanese policymakers on Tuesday reaffirmed the Bank of Japan's (BOJ) commitment to its 2% inflation target in a meeting held between the central bank chief and the country's economy and finance ministers, Reuters reported. The Japanese government and the central bank also agreed to keep in close contact and cooperation, in line with commitments made in a 2013 joint statement, which also laid out the country's inflation target for the first time.

Japan Airlines on Tuesday forecast a net loss of 146 billion yen ($1.28 billion) for the fiscal year ending March 2022, as it struggles to recover from the coronavirus pandemic, Nikkei Asia reported. JAL had refrained making a forecast for the current fiscal year until now, amid lingering uncertainties related to COVID-19. The company is now expected to have operating losses for a second consecutive fiscal year. The airline forecasts 766 billion yen in consolidated sales for the current fiscal year, up 59% from the previous year.

Japan's automobile sales slumped 31.3% in October from a year earlier to mark the fourth straight month of declines, industry data showed on Monday, a sign output cuts caused by the COVID-19 pandemic were hurting the country's already weak consumption, Reuters reported. The domestic sales data is among few indicators available so far in gauging the strength of consumption since state of emergency curbs to combat the pandemic were lifted on Sept. 30. The sales slump highlights the widening damage of supply disruptions on the economy.

Bank of Japan chief Haruhiko Kuroda said there is scant risk of the country’s inflation accelerating in the same way it has elsewhere in the world as he reinforced the message that stimulus will keep rolling in Tokyo even as other central banks pare theirs back, Bloomberg News reported. Inflation trends overseas and moves by the Federal Reserve and other monetary authorities won’t sway BOJ policy or soften the yen, Kuroda said at a press briefing after the central bank stood pat on policy and lowered its price and growth forecasts.

Japan finally has an inflation pulse and the gains are much stronger than they first appear, a factor that could start to influence speculation over the Bank of Japan’s policy path, Bloomberg News reported. While the first rise in key consumer prices in 18 months was just 0.1% in September, once the impact of slashed mobile phone fees is removed, core inflation is closer to 1.4%, according to a Bloomberg calculation. The sharp reductions in cellphone charges stem from a campaign of public pressure on mobile carriers to reduce fees by former Prime Minister Yoshihide Suga.

Japanese Finance Minister Shunichi Suzuki said the nation’s incoming government will seek a new type of capitalism that helps tackle wealth inequality, but on questions around the sales tax, debt and the central bank he sounded like the official he replaced a day earlier, Bloomberg News reported. “I’ll be seeking to bring about a new form of capitalism that creates a virtuous cycle of growth and wider wealth distribution,” Suzuki said at his inaugural press conference Tuesday, a day after succeeding long-serving finance chief Taro Aso.