Japan Chart Pack QQE continues to face strong headwinds Three years after the launch of Quantitative and Qualitative Easing, the Bank of Japan’s efforts to stoke price pressures are failing. Business confidence has fallen to a three-year low while the... 12th April 2016 · 1 min read
Japan Chart Pack Recovery in the Nikkei to continue The economic recovery remains sluggish and the recent financial market turmoil seems to have dampened the mood. With the stronger yen lowering corporate profits and reducing import costs, we think the... 7th March 2016 · 1 min read
Japan Chart Pack Yen strengthens despite shift to negative rates The Bank of Japan’s decision to cut the interest rate on some excess reserves below zero initially delivered a slide in the exchange rate and a rise in equities. But these shifts soon reversed and the... 10th February 2016 · 1 min read
Japan Chart Pack Return to growth belies headwinds to inflation There are good reasons for the Bank of Japan to feel confident about the prospects of hitting its 2% inflation target. Economic activity is on the mend, the labour market is tight, and underlying... 11th January 2016 · 1 min read
Japan Chart Pack Economy returning to growth There is a good chance that tomorrow’s revised GDP data will show that output was broadly flat rather than falling in Q3. Whatever the outturn, the early figures point to a return to growth this... 7th December 2015 · 1 min read
Japan Chart Pack BoJ’s new inflation gauge climbs to fresh high The Bank of Japan left policy settings unchanged at its end-October meeting amid tentative signs of stabilisation in manufacturing activity and an ongoing rebound in its favourite inflation measure... 4th November 2015 · 1 min read
Japan Chart Pack Economy back in recession Japan’s economy probably shrank for a second straight quarter in Q3. With the economic recovery grinding to a halt, the chances of hitting the Bank’s 2%inflation by next summer are dwindling rapidly... 6th October 2015 · 1 min read
Japan Chart Pack Wage growth remains the missing link The Bank of Japan’s efforts to lift inflation to 2% continue to face a number of headwinds. Spare capacity widened last quarter as output dropped, oil prices have fallen to fresh lows, and market... 4th September 2015 · 1 min read
Japan Chart Pack Price pressures to strengthen only gradually There are tentative signs that underlying price pressures have strengthened again since the start of the year. However, GDP almost certainly shrank in Q2, and a rapid rebound in the second half of the... 5th August 2015 · 1 min read
Japan Chart Pack Activity slowdown dents hopes of strong price gains The Bank of Japan’s preferred inflation measure fell to near zero in May. Policymakers appear confident that a vigorous recovery in demand will create capacity shortages and boost price pressures in... 2nd July 2015 · 1 min read
Japan Chart Pack Yen falls to 13-year low against the US-dollar The diverging prospects for monetary policy in Japan and the US have resulted in a renewed weakening of the yen in recent weeks. With price pressures set to remain subdued, we think that the Bank of... 3rd June 2015 · 1 min read
Japan Chart Pack Japan’s stock market should continue to outperform Recent data suggest that economic activity held up fairly well at the start of the year and that the labour market continues to tighten. However, there are no signs that price or wage pressures are... 7th May 2015 · 1 min read
Japan Chart Pack Broad-based weakness supports case for more easing While the economic recovery seemed to have picked up pace at the start of the year, recent data have dashed hopes of rapid growth. Consumers are not spending the windfall from lower energy prices, and... 8th April 2015 · 1 min read
Japan Chart Pack Low inflation puts policymakers in a bind While the economy didn’t expand as much as many had hoped last quarter, more recent data have been promising. The labour market remains tight and corporate profits have never been higher, so the... 4th March 2015 · 1 min read
Japan Chart Pack Price pressure moderates despite rebound in activity The economy appears to have grown rapidly last quarter, and the labour market has not been as tight since the late 1990s. However, wage growth remains sluggish despite a temporary boost from winter... 5th February 2015 · 1 min read
Japan Chart Pack Economy leaving sales tax weakness behind Recent data suggest that the economy has finally shed the manacles of the sales tax hike. However, demographic headwinds are building, and real wages continue to fall despite the recent slowdown in... 7th January 2015 · 1 min read
