Abe’s Adviser Fujii hopes that BOJ doesn’t turn contractionary at July 28-29 meeting

According to an adviser to Japanese Prime Minister Shinzo Abe, Japan needs large fiscal stimulus packages through 2018 to emerge from deflationary pressures, Bloomberg reports.

Satoshi Fujii reiterated, to “completely end deflation,” about 37 trillion yen in stimulus is needed.

He added that in conditions of deflation, fiscal policy is “exceptionally effective,” and warned, “If the BOJ turns contractionary it would have a big impact. I certainly hope that does not happen.”

On Brexit, Mr. Fujii said that,,“Without a doubt risks have increased, but it won’t crash the global economy.”