Japan Economics Update Fiscal policy will continue to support the recovery The supplementary budget that PM Kishida will compile by year-end will probably contain only half as much fiscal support as was provided last year. However, given that government spending will still... 1st November 2021 · 3 mins read
Japan Economics Update Policy tightening still a distant prospect The Bank of Japan shocked no one in keeping its interest rate targets unchanged today, a status quo we think will last for years. The Bank also revised down its growth forecasts for the current fiscal... 28th October 2021 · 3 mins read
Japan Economics Update Rising prices won’t prevent rebound in consumption The weaker yen and higher energy prices will reduce the purchasing power of households a bit. But with the household savings rate still very high, this won’t prevent a strong rebound in services... 26th October 2021 · 2 mins read
Japan Economics Update Why is inflation still so low in Japan? The continued weakness in Japan’s inflation is partly due to the recent plunge in mobile phone tariffs and the long lags between global energy prices and household utility bills. Indeed, inflation is... 12th October 2021 · 4 mins read
Japan Economics Update What does Kishida’s victory mean for Japan? Incoming PM Kishida has provided mixed signals on fiscal policy, pledging a large near-term stimulus while retaining ambitious medium-term consolidation plans. Given that he blamed deregulation for... 29th September 2021 · 4 mins read
Japan Economics Update Japan’s LNG shielded from Europe price spike for now Japan’s reliance on fixed, long-term contracts for its natural gas supply should limit the impact on consumers of the recent surge in gas spot prices currently being felt most acutely across parts of... 22nd September 2021 · 2 mins read
Japan Economics Update New Bank of Japan Governor unlikely to lift rates The Bank of Japan left policy settings unchanged today and while a new Prime Minister could appoint a more hawkish BoJ Governor, we expect the Bank to keep interest rates unchanged for years. 22nd September 2021 · 3 mins read
Japan Economics Update Ishiba could clear path for Kono to become PM Kono Taro is emerging as the favourite to succeed Mr Suga as PM. While Kishida and Takaichi are viewed as safer hands by LDP party elders, the outspoken Kono’s popularity with the public gives him the... 8th September 2021 · 6 mins read
Japan Economics Update Consumer spending to fall across Q3 The latest high-frequency data point to the relentless surge in new coronavirus cases starting to weigh heavily on consumer activity this month. And with full-blown emergency declarations to be... 26th August 2021 · 4 mins read
Japan Economics Update What would a hard lockdown mean for Japan? With the Delta variant lifting new infections to a record-high, calls for a “hard” lockdown are growing. If that happened, services activity would fall further but we doubt that the government would... 2nd August 2021 · 3 mins read
Japan Economics Update Short-lived spike in underlying inflation on the cards The surge in input prices caused by supply shortages is starting to show signs of filtering through into higher output prices. Combined with upwards pressure on services inflation from a “vaccine... 29th July 2021 · 3 mins read
Japan Economics Update Bank shifting focus away from emergency response The Bank of Japan today unveiled the details of its green lending facility, underlining that its focus is now moving away from addressing the pandemic towards longer-term structural issues. 16th July 2021 · 3 mins read
Japan Economics Update GDP to rebound in Q3 despite restrictions in Tokyo While new infections in Tokyo have picked up, the fourth state of emergency in the capital is partly a political move designed to placate fears that the Tokyo Olympics will trigger yet another virus... 12th July 2021 · 2 mins read
Japan Economics Update Four key takeaways from Suga’s first big-boned policy PM Suga unveiled his administration’s first mid- to long-term growth strategy – known as the “big-boned policy” – on Friday. While most themes have been carried over from the Abe administration, PM... 24th June 2021 · 4 mins read
Japan Economics Update Bank to broaden its gaze to encompass climate change While the Bank of Japan kept its major policy settings unchanged today and will continue to do so for the foreseeable future, it extended the deadline for applications to its emergency lending... 18th June 2021 · 3 mins read
Japan Economics Update Producer price jump unlikely to boost inflation much Producer prices are rising the most in years, but this largely reflects global supply shortages that should abate as vaccines are rolled out. We expect consumer price inflation to average a muted 0.6%... 19th May 2021 · 2 mins read
