Japan Economics Update Bank of Japan will have to lower policy rate further The Bank of Japan’s decision to replace its target for the monetary base with a target for 10-year government bond yields has prolonged the lifespan of QQE. However, it hasn’t improved the near term... 21st September 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Aug.) Negative interest rates are undermining the profitability of financial institutions asbanks have slashed lending rates. However, lower borrowing costs have yet to resultin stronger credit demand. 19th September 2016 · 1 min read
Japan Economics Update Why is wage growth not picking up? The tight labour market in Japan is delivering pay increases for younger workers willing to move jobs, but a low level of labour market mobility and a rising share of older workers, for whom pay rises... 30th August 2016 · 1 min read
Japan Economics Update Governor Kuroda is mulling another policy surprise Amid rising concerns that the BoJ’s large-scale purchases of Japanese Government Bonds cannot be sustained for much longer, policymakers are mulling the introduction of an explicit target for long... 17th August 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Jul.) The conventional wisdom is that the Bank of Japan’s large-scale bond purchases will soon dry up the pool of available assets. By contrast, we believe that QQE can continue for several more years. One... 12th August 2016 · 1 min read
Japan Economics Update Stimulus package doesn’t let the BoJ off the hook The fiscal stimulus package approved by the Cabinet today will boost growth by much less than the headline figure suggests. As such, the Bank of Japan still has more work to do reach its 2% inflation... 2nd August 2016 · 1 min read
Japan Economics Update Bank of Japan not done yet The Bank of Japan’s decision to refrain from meaningful easing once again today has disappointedinvestors and resulted in a renewed strengthening of the yen. While we still expect the Bank to domore... 29th July 2016 · 1 min read
Japan Economics Update Don’t believe the fiscal hype Prime Minister Abe’s announcement of a huge fiscal stimulus package today provided fresh impetus to Japan’s stock market and resulted in another decline of the yen against the dollar, but the news... 27th July 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor Some investors in Japan have responded to the introduction of negative interest ratesby acquiring more overseas securities. Meanwhile, bank lending rates have fallen butthe availability of cheaper... 20th July 2016 · 1 min read
Japan Economics Update Is the Bank of Japan already delivering “helicopter money”? Speculation that the Bank of Japan has already embarked on “helicopter money” are wide off the mark. While we believe the measure would provide a solution to the country’s debt woes, the helicopter... 18th July 2016 · 1 min read
Japan Economics Update Two-thirds majority no reason to cheer The landslide victory for Japan’s ruling coalition in the Upper House election is not necessarily good news for the economy, as lawmakers’ time and energy may now be focused on revising the pacifist... 11th July 2016 · 1 min read
Japan Economics Update Would FX intervention halt the strengthening of the yen? If worries about a deepening crisis in the EU drive another surge of safe haven flows into Japan, even direct foreign exchange intervention would probably not prevent the yen from strengthening... 29th June 2016 · 1 min read
Japan Economics Update Should the BoJ become more flexible? Doing away with a specific timeframe for reaching 2% inflation would sow doubts about policymakers’ commitment to the 2%-target and would be a major step backwards. Instead, more stimulus is needed to... 22nd June 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor (May) Bank lending rates have fallen sharply since policymakers introduced negative interest rates in January. One consequence is that bank profits have started to moderate from high levels. 21st June 2016 · 1 min read
Japan Economics Update Bank of Japan to provide more easing next month The Bank of Japan still sees downside risks to its inflation forecasts, and we believe that policymakers will respond by stepping up the pace of easing next month. 16th June 2016 · 1 min read
Japan Economics Update Delay in sales tax hike brightens outlook for 2017 The delay that has just been confirmed in the sales tax hike will result in economic activity being stronger than would have been the case next year. The decision diminishes pressure on the Bank of... 1st June 2016 · 1 min read
