Japan Economics Update Bank of Japan unlikely to tighten anytime soon The BoJ left policy settings unchanged today and lifted its GDP forecasts for the next two years. Even though we expect inflation to approach the 2% inflation target next year, we doubt that the Bank... 31st January 2017 · 1 min read
Japan Economics Update BoJ poised to scale back bond purchases The Bank of Japan appears to have reduced the number of short-term JGB auctions it conducts this month, paving the way for a reduction in the volume of purchases this year. However, an increase in the... 26th January 2017 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Dec.) Corporate debt affordability remains extraordinarily high, as corporate profit margins have rebounded and borrowing costs have continued to decline. Firms have responded with higher corporate bond... 18th January 2017 · 1 min read
Japan Economics Update Government remains reluctant to spend The budget for the coming fiscal year foresees broadly neutral rather than expansionary fiscal policy. With supplementary spending for the current fiscal year barely larger than last year’s, the... 9th January 2017 · 1 min read
Japan Economics Update Bank of Japan on hold for foreseeable future The Bank of Japan left policy settings unchanged today. As expected, it upgraded its assessment of the health of the economy, which points to policy remaining on hold for the foreseeable future. 20th December 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Nov.) The Bank of Japan’s yield target has kept JGB prices anchored over recent weeks against the backdrop of a sell-off in bond markets overseas. The volume of the Bank’s bond purchases has also remained... 19th December 2016 · 1 min read
Japan Economics Update Pension reform to improve health of public finances A proposed reform to better link pension payments with movements in wages should improve the viability of Japan’s public finances. For current workers though, the reform may force them to delay... 29th November 2016 · 1 min read
Japan Economics Update Japan moves one step closer to helicopter money With its first fixed-rate operation today in support of the new target for 10-year Japanese Government Bond yields, the Bank of Japan has moved closer to full-fledged helicopter money. There are... 17th November 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Oct.) Amid falling profitability and sluggish loan demand at home, banks continue to expand overseas lending. 16th November 2016 · 1 min read
Japan Economics Update Could the RCEP compensate for the demise of the TPP? The potential benefits for Japan from the proposed RCEP trade deal in Asia are similar in scale to those that might have been achieved under the TPP. But they are not substitutes for each other: gains... 15th November 2016 · 1 min read
Japan Economics Update Japan’s hopes for the TPP dead and buried The yen may strengthen a little further as increased uncertainty adds to safe haven demand, and Japanese exporters may face a less welcoming environment for trade. But, for Japan, the key immediate... 9th November 2016 · 1 min read
Japan Economics Update Baton passing to fiscal policy as BoJ reluctant to ease The Bank of Japan today pushed back the timing for hitting its inflation target and sounded alarmed about the recent moderation in price pressures, but nonetheless refrained from providing more... 1st November 2016 · 1 min read
Japan Economics Update Japan well placed to cope with higher energy prices Japan’s economy has become less reliant on imported energy in recent years as electricity consumption has fallen sharply. With consumers having stepped up savings over the past two years, the country... 18th October 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Sep.) Bank lending picked up in September and a broader measure of private sector credit expanded at the fastest pace since the launch of QQE in Q2. Meanwhile, low returns at home have encouraged Japanese... 17th October 2016 · 1 min read
Japan Economics Update What would President Trump mean for Japan? We wouldn’t be overly concerned about a US tariff on Japanese imports should Donald Trump become president, as Japanese manufacturers mostly serve their US customers from their US subsidiaries. By... 5th October 2016 · 1 min read
Japan Economics Update How will the BoJ conduct policy in future? The key tool for monetary loosening in the Bank of Japan’s new framework will be the short-termpolicy rate, which now stands at -0.1%, rather than the new target for 10-year JGB yields. 22nd September 2016 · 1 min read
