Japan Economics Update What to make of the surge in second-hand sales? Despite rapid growth, sales of second-hand goods remain too low to constitute a major threat to retailers. Their rising popularity reflects the increased convenience of electronic platforms rather... 19th June 2018 · 1 min read
Japan Economics Update BoJ still holding fast to ultra-loose policy The Bank of Japan has recently been expressing greater concern about the impact of ultra-loose monetary policy on financial stability. But Governor Kuroda today insisted that the key focus of policy... 15th June 2018 · 1 min read
Japan Economics Update US auto tariffs would trigger retaliation from Japan The imposition of high tariffs on car imports that the US is considering would have a palpable impact on economic activity in Japan. This may be another empty threat by the Trump administration, but... 25th May 2018 · 1 min read
Japan Economics Update BoJ will probably reduce its ETF purchases The BoJ could continue buying ETFs at the current pace for a long time since its purchases are small relative to the size of the stock market. But the Bank reckons that the stock market is now close... 22nd May 2018 · 1 min read
Japan Economics Update What do higher energy prices mean for Japan? The recent jump in crude oil prices will give a significant lift to inflation in Japan, taking it somewhat closer to the Bank of Japan’s target, but only for a short while. For a large net energy... 18th May 2018 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Apr.) Purchases of government bonds by the Bank of Japan have stabilised over the past six months. But the rate at which its holdings are growing has continued to slow as its bonds are now maturing at a... 14th May 2018 · 1 min read
Japan Economics Update Ageing unlikely to lower productivity growth any further Population ageing explains little of the recent slowdown in productivity growth. And with the pace of greying not picking up any further, we expect productivity growth to rebound to 1% per annum over... 4th May 2018 · 1 min read
Japan Economics Update 2% inflation target remains out of reach The Bank of Japan today refrained from providing a concrete timeframe for hitting its 2% inflation target for the first time since Governor Kuroda took over. This highlights that policymakers have... 27th April 2018 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Mar.) Bank lending has continued to slow in recent months. However, banks’ willingness to provide credit has rarely been higher, and broader measures of credit that also include corporate bonds show that... 12th April 2018 · 1 min read
Japan Economics Update What would a US-China trade war mean for Japan? The proposed tariffs on bilateral imports between the US and China would only have a small direct impact on Japan. Nor would Japan benefit much if buyers looked for cheaper alternatives. A further... 10th April 2018 · 1 min read
Japan Economics Update Talking the exit talk The Bank of Japan has become more vocal about its desire to exit the current ultra-loose policy settings. But with concerns about the impact of low policy rates on financial intermediation overblown... 4th April 2018 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Feb.) Japanese households and firms now both receive more in interest income than they pay out on their debt. That is making life difficult for banks. The main factor keeping them afloat is their sizeable... 20th March 2018 · 1 min read
Japan Economics Update PM Abe on the ropes again Prime Minister Abe is once again embroiled in a political scandal that raises the possibility that he could be replaced as head of the LDP, and hence as prime minister. This still seems unlikely but... 12th March 2018 · 1 min read
Japan Economics Update New BoJ leadership will stay the course Sluggish wage growth, subdued inflation expectations and the renewed strengthening of the exchange rate suggest that inflation will remain below the Bank’s 2% target for the foreseeable future. The... 9th March 2018 · 1 min read
Japan Economics Update How will Japan react to the Trump tariffs? Japanese officials have good reasons to take the imposition of US tariffs on steel and aluminium in their stride. The US would have to target a more important industry to provoke Japan to retaliate... 7th March 2018 · 1 min read
Japan Economics Update Bank of Japan unlikely to buy foreign bonds An advisor to PM Abe has suggested that the Bank of Japan should buy foreign bonds. However, economic conditions are far too buoyant at the moment for policymakers to take such a radical step. 1st March 2018 · 1 min read