Japan Economics Update Monetary Indicators Monitor (Mar.) The Bank of Japan now owns more Japanese government bonds than private pension funds and insurance companies combined. However, with the government pension fund continuing to shed bonds, and usage of... 14th April 2015 · 1 min read
Japan Economics Update Bank of Japan still likely to expand QQE later this month The Bank of Japan left policy settings unchanged today and Governor Kuroda indicated that the Board doesn’t see the need for additional stimulus at the moment. However, Mr Kuroda has a record of... 8th April 2015 · 1 min read
Japan Economics Update Revised data show that wage growth remains anaemic Revised data show that the base pay hikes agreed upon in last year’s spring wage negotiations were not reflected in aggregate base pay, providing another headwind to higher inflation. 7th April 2015 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Feb.) While corporate debt increased at the fastest pace in years last quarter, the increase has been more than offset by higher corporate assets. With corporate profits at record-highs, firms are well... 18th March 2015 · 1 min read
Japan Economics Update Bank of Japan still likely to ease preemptively next month Despite the recent run of stronger data, the Bank of Japan was no more upbeat on the economic outlook at today’s meeting than before. Consumer price inflation is likely to turn negative soon... 17th March 2015 · 1 min read
Japan Economics Update Is Japan’s electronics sector doomed? The travails of Japan’s electronics giants are not indicative of a general demise of the sector. In aggregate, the electronics industry is in fact doing quite well. 5th March 2015 · 1 min read
Japan Economics Update Should we be worried about the negative saving rate? We are not too worried about evidence suggesting that Japanese households now have a negative saving rate. Thanks to a shrinking fiscal deficit and high corporate saving, Japan remains a net lender to... 25th February 2015 · 1 min read
Japan Economics Update What’s behind the slowdown in Japanese FDI into China? The slowdown in Japanese FDI into China is not reflective of a general pullback in overseas investment by Japanese firms but is instead linked, we think, to political tensions between the two... 24th February 2015 · 1 min read
Japan Economics Update Cautious Bank of Japan still set to ease again in late-April Governor Kuroda today expressed the usual confidence about Japan’s economic prospects and the likelihood of price pressures picking up. But with the recent economic data disappointing and inflation... 18th February 2015 · 1 min read
Japan Economics Update Price pressures building slowly The Bank of Japan’s 2% inflation target still looks out of reach, but recent data do at least include some promising signs that price pressures are picking up. 17th February 2015 · 1 min read
Japan Economics Update Concerns about yen unlikely to prevent more BoJ easing We doubt that concerns about rising import costs caused by a renewed weakening of the yen will prevent the Bank of Japan from announcing more stimulus in April. Instead, we maintain our view that... 13th February 2015 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Jan.) Loan growth moderated in January, and a range of leading indicators suggest that borrowing will slow further in coming months. 10th February 2015 · 1 min read
Japan Economics Update BoJ still likely to ease again soon The Bank of Japan has turned more optimistic on the economic outlook recently, in part on the belief that the plunge in the cost of energy should boost demand. A more pressing concern though is that... 4th February 2015 · 1 min read
Japan Economics Update Government eases pressure on BoJ to expand stimulus The greater tolerance being shown by Japan’s government towards inflation remaining below target simply reflects the fact that the oil price collapse has made hitting the target all but impossible in... 28th January 2015 · 1 min read
Japan Economics Update Impact of weaker yen on export volumes remains elusive The rise in Japan’s exports to the US appears to reflect the strength of the recovery there rather than yen weakness. Indeed, evidence that the plunge in the yen is boosting export volumes remains... 26th January 2015 · 1 min read
Japan Economics Update BoJ’s optimism reduces chances of near-term easing Apart from a minor tweak to its lending programmes, the Bank of Japan left policy settings unchanged today and signalled no concern about the impact of lower oil prices. The chances of additional... 21st January 2015 · 1 min read
