Japanese PM Abe Delaying Sales-tax Hike By 18 Months

Japanese Prime Minister Shinzo Abe said Tuesday the government will delay by 18 months a planned increase in sales tax. The move comes after the economy unexpectedly fell into recession in the third quarter. The dollar fell to �116.45, compared with �116.99 just before Abe began to speak on Japanese television. The sales-tax increase to 10% from 8% had been scheduled to take place in October 2015. Abe also said the tax hike will not be delayed again. A previous sales-tax hike to 8% from 5% went into effect in April. Abe will dissolve the lower house of parliament on Nov. 21 and has called for a snap election to be held in December.