Japan Economics Update Bank of Japan has more work to do There were no surprises from the Bank of Japan meeting that ended today and policy was unchanged. Nonetheless, we continue to expect further easing later this year to undermine the yen as the global... 25th January 2011 · 1 min read
Japan Economics Update Japan shuffles euro reserves as economy slides Japan’s announcement that it will buy bonds issued by the European Financial Stability Facility (EFSF) has been heralded by some as further evidence of the international support that might help to... 11th January 2011 · 1 min read
Japan Economics Update Two elephants leave no room for more fiscal stimulus The corporation tax cuts agreed by the Cabinet today and the supplementary budget passed at the end of November are simply tinkering at the margin. The mountain of public debt and looming demographic... 16th December 2010 · 1 min read
Japan Economics Update Recovery too weak to end deflation Japan’s economy is on a roller-coaster ride. This year’s growth overall is likely to be the fastest of any G7 country, but GDP will almost certainly shrink in the fourth quarter. Such volatility... 16th November 2010 · 1 min read
Japan Economics Update Why don't households fear deflation? Policy-makers and the financial markets may be focused on the risks posed by persistent deflation, but the latest surveys from Japan suggest that households there do not believe prices are falling and... 12th November 2010 · 1 min read
Japan Economics Update Will the G20 agree to current account targets? The G20 Summit in Korea next week (11th – 12th) will be overshadowed by the fall-out from “currency wars”, hampering any attempt at the improved coordination of policies necessary to help rebalance... 5th November 2010 · 1 min read
Japan Economics Update Is the Bank of Japan preparing to match the Fed's QE? The Bank of Japan’s decision to bring forward its November Policy Board meeting to the day after next Wednesday’s FOMC raises the intriguing possibility that the Bank intends to respond to any... 28th October 2010 · 1 min read
Japan Economics Update What should we make of the BoJ's latest moves? Today’s announcements of a new asset purchase scheme by the Bank of Japan (BoJ) and its symbolic lowering of the key policy rate are not game changers and the tepid market response is probably... 5th October 2010 · 1 min read
Japan Economics Update Activity index suggests recovery back on track July’s all industry activity index suggests that Japan’s economic recovery picked up again in the third quarter after wobbling in the second quarter. In particular, the expenditure breakdown (which is... 22nd September 2010 · 1 min read
Japan Economics Update Bank of Japan turns more dovish The Bank of Japan (BoJ) left rates unchanged today but the accompanying policy statement was more cautious on the outlook. This is a positive step but the BoJ will probably stay reluctant to implement... 7th September 2010 · 1 min read
Japan Economics Update Bank of Japan's latest gesture fails to impress The Bank of Japan's decision to loosen monetary policy further at an emergency meeting today simply brought forward the move that was widely expected to take place early next month. The economic... 31st August 2010 · 1 min read
Japan Economics Update What can Japan do to stem the rise of the yen? There is little that the Japanese government can do to engineer a fundamental shift in sentiment towards the yen, which is being driven by developments elsewhere. A change in rhetoric from the Bank of... 25th August 2010 · 1 min read
Japan Economics Update Above-consensus growth may still not be good enough The disappointing data for the second quarter have prompted us to revise down our forecast for Japan’s GDP growth in 2010. At the same time we are nudging our 2011 forecast higher, and our numbers for... 19th August 2010 · 1 min read
Japan Economics Update Bank of Japan unmoved by rising yen The Bank of Japan made only small tweaks to its policy statement today and, contrary to some expectations, introduced no policy shifts in response to the rise of the yen. Its ability to make a lasting... 10th August 2010 · 1 min read
Japan Economics Update Underlying trends in retail spending still positive The slowdown in the annual growth of retail sales reflects both the fading of the boost from government subsidies for car purchases and changes in fuel price inflation. Sales excluding both autos and... 29th July 2010 · 1 min read
Japan Economics Update BoJ survey refutes claims of a credit crunch The Bank of Japan’s latest Senior Loan Officer Survey confirms that banks are more than willing to lend. Demand for loans remains weak, especially from firms, but there is no support here for the... 21st July 2010 · 1 min read
