The LDP’s weak performance in the Upper House elections signals pressure for looser fiscal policy, just as the Bank of Japan is constrained from tackling rising inflation in the face of tariff threats. With Japanese government bond yields pushing at multi-decade highs, concerns about the sustainability of public finances are mounting.
Our Japan and Markets teams will assess the risks of an outright fiscal crisis in this 20-minute briefing on Wednesday 23rd July at 0900 BST/1600 SGT, talking through the pressures on the authorities to boost spending, the BoJ’s inflation dilemma and the implications for Japanese financial markets. During this 20-minute session, our team will answers your questions as they explore the macro and policy outlooks, addressing key issues including:
- If escalating global trade tensions could offset persistent inflation pressures;
- When the Bank of Japan might resume its tightening cycle;
- Whether Japan is facing an imminent fiscal crisis;
- What growing concerns mean for the outlook for JGBs, the yen, and Japanese equities.