Japan Economics Update Is online retailing keeping price pressures subdued? One reason put forward recently for the weakness of price pressures in Japan is that a boom in e-commerce is keeping a lid on prices. However, we find no evidence that this is having a major impact. 13th September 2017 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Aug.) Bank lending rates remain very low and corporate profits have climbed to record highs. Companies are in rude financial health as a result and the number of bankruptcies has dropped to levels not seen... 12th September 2017 · 1 min read
Japan Economics Update Would the yen remain a safe haven during a Korean War? The experience of the last couple of weeks suggests that gold might be the better safe haven choice if war were to break out on the Korean peninsula. Nonetheless, on the evidence of past crises, the... 8th September 2017 · 1 min read
Japan Economics Update How vulnerable would Japan be if war broke out in Korea? South Korea is an important trading partner so Japan would not remain unscathed even if war in Korea didn’t involve Japan directly. And if North Korea fired missiles at Japan, potential losses could... 4th September 2017 · 1 min read
Japan Economics Update Further yen weakness and Nikkei upside limited Having appreciated against the dollar over recent weeks, the yen initially strengthened further when news of the North Korean missile launch broke yesterday. Despite this, we continue to expect the... 30th August 2017 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Jul.) While domestic loan growth has picked up in recent years, lending to foreign borrowers has risen much faster over the past decade. Japan is now the single-largest provider of cross-border lending. 10th August 2017 · 1 min read
Japan Economics Update Is the Bank of Japan giving up on its 2% inflation target? Comments today by BoJ Board Member Funo suggest that the Bank has given up on reaching its inflation target any time soon. Market expectations of policy tightening are likely to recede further as a... 2nd August 2017 · 1 min read
Japan Economics Update Is faster productivity growth holding back service inflation? We’re not much convinced by suggestions from the Bank of Japan that firms cutting back on the hours their employees work has contributed to the continued lack of inflation pressure. Very low and... 25th July 2017 · 1 min read
Japan Economics Update Further reductions to Board’s inflation forecasts still needed The Bank of Japan upgraded its assessment of the economy yet again at today’s meeting. But the Board’s inflation forecasts remain far too optimistic even after renewed downgrades. We reiterate our... 20th July 2017 · 1 min read
Japan Economics Update Looking beyond Abe The popularity of the government has suffered severely recently and there is now a real chance that Mr Abe will be out of office before the next legislative elections. A change of prime minister could... 19th July 2017 · 1 min read
Japan Economics Update Should the government reappoint Mr Kuroda? While inflation remains well below the Bank of Japan’s 2% target, Governor Kuroda deserves credit for a number of radical policy changes. His reappointment would therefore underline the government’s... 18th July 2017 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Jun.) Private sector debt is growing at the fastest pace on record as corporate debt issuance has surged. As a result, both household and corporate debt are now rising again relative to output. 14th July 2017 · 1 min read
Japan Economics Update EU trade deal could boost productivity somewhat The impact of the proposed tariff cuts in the EU/Japan free trade agreement should not be overstated. But the deal will also reduce non-tariff barriers and barriers to foreign direct investment which... 6th July 2017 · 1 min read
Japan Economics Update LDP will have to respond to crushing defeat in Tokyo While the ruling LDP’s severe defeat in local elections in Tokyo is not necessarily a bellwether to developments at the national level, we think that the government may respond with a larger... 3rd July 2017 · 1 min read
Japan Economics Update Bank of Japan unlikely to tighten any time soon The Bank of Japan today turned more upbeat in its assessment of economic conditions, but Governor Kuroda remained cautious on the prospect of hitting the inflation target. With inflation set to... 16th June 2017 · 1 min read
Japan Economics Update Monetary Indicators Monitor (May) Bank profits have continued to shrink as lenders’ net interest margins have declined. However, non-financial firms are benefitting from rock-bottom borrowing costs and corporate bankruptcies remain... 14th June 2017 · 1 min read
