Recent data suggest that economic activity held up fairly well at the start of the year and that the labour market continues to tighten. However, there are no signs that price or wage pressures are strengthening, and we still think that the Bank of Japan will have to step up the pace of easing before too long to reach its 2% inflation target. The upshot is that the yen should weaken further against the dollar, while the Nikkei should continue to outperform other stock markets.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services