Japan Economics Update What shape will economic policy take post-Abe? Japan will very soon have a new Prime Minister. Close Abe aide Suga Yoshihide is the current front runner in the LDP leadership contest and would likely keep policy firmly on the course set by Mr Abe... 1st September 2020 · 7 mins read
Japan Economics Update BoJ’s T-Bill purchases yet to boost the money supply The Bank of Japan’s recent purchases of Treasury Bills have yet to feed through into the money supply as the government’s deposit account at the Bank has ballooned. That will provide a further boost... 31st August 2020 · 2 mins read
Japan Economics Update Deflation set to deepen further The slump in underlying inflation in Tokyo in August was mostly driven by subsidies to domestic travel as part of the Go To travel campaign. But even when we strip out the impact of those subsidies... 28th August 2020 · 3 mins read
Asia Economics Update Second wave impacts to differ in Korea and Japan Both Korea and Japan are experiencing second waves, but a stronger shift in consumer behaviour in Korea means the outbreak there is likely to have a larger impact on growth. As such, we’ve revised... 27th August 2020 · 3 mins read
Japan Economics Update Will the surge in the money supply boost inflation? The money supply has recently been growing at the fastest rate in at least two decades, boosted by government giveaways and generous lending to non-financial firms. However, the expansion in the... 18th August 2020 · 4 mins read
Japan Economics Update Implications of another state of emergency The second virus wave that is hitting Japan supports our view that Japan’s economy will contract more sharply this year than most anticipate. However, a renewed state of emergency would probably not... 3rd August 2020 · 3 mins read
Japan Economics Update BoJ will keep policy unchanged The Bank of Japan kept policy settings unchanged today as widely anticipated and we think it won’t announce major new measures over the coming months. 15th July 2020 · 3 mins read
Japan Economics Update End of Abenomics in name only when PM steps down The chances of PM Abe serving a fourth term as LDP leader have fallen considerably in recent months. Instead, speculation has turned to whether Mr Abe will be able to hang on as Prime Minister for the... 1st July 2020 · 6 mins read
Japan Economics Update BoJ unlikely to expand lending facilities any further The Bank of Japan today expanded its lending facilities further. The total amount of support for corporate funding is now equivalent to nearly 20% of the debt of non-financial firms and we don’t... 16th June 2020 · 3 mins read
Japan Economics Update Robust corporate balance sheets to support recovery Caught out with high levels of debt during the 1991 asset price crash, many Japanese firms then accumulated significant rainy-day funds to shield themselves against a future crisis. That trend... 11th June 2020 · 3 mins read
Japan Economics Update Employment income to rebound in H2 Many firms have furloughed employees during the state of emergency and stopped paying wages. But with the economy now opening up again and the government’s employment subsidy scheme starting to be... 3rd June 2020 · 3 mins read
Japan Economics Update Large fiscal response should support recovery The large supplementary budget drafted by PM Abe’s Cabinet today lifts fresh government spending in response to the virus to around 8% of GDP. That should provide the platform for a strong recovery in... 27th May 2020 · 3 mins read
Japan Economics Update Massive support from BoJ should contain bankruptcies The Bank of Japan launched a new lending facility today to support bank lending to small businesses and we suspect its measures will now be sufficient to secure the financing needs of firms throughout... 22nd May 2020 · 3 mins read
Japan Economics Update Wage subsidies to temper surge in unemployment Most of the fresh spending in PM Abe’s fiscal package will not provide meaningful support to employment. But as was the case during the financial crisis, the government’s employment adjustment fund... 28th April 2020 · 3 mins read
Japan Economics Update Chances of rate cut dwindling The Bank of Japan today scaled up its measures to ease corporate and household financing strains significantly. However, the Board didn’t cut the policy rate even though all members expect a slump in... 27th April 2020 · 3 mins read
Japan Economics Update Japan’s push to reshore production won’t succeed The government is encouraging manufacturers to return production of components from their overseas subsidiaries to Japan. Given the large scale of production that is now located abroad, a major... 23rd April 2020 · 3 mins read
