Japan Economics Update BoJ underscores line in the sand The Bank of Japan’s offer to buy an unlimited amount of bonds today for the first time since July has dampened expectations that policymakers are about to withdraw stimulus. As a result, the yen has... 2nd February 2018 · 1 min read
Japan Economics Update Foreign workers continue to ease labour shortages One widely-overlooked factor driving Japan’s growth in recent years has been a surge in the number of foreign workers. This appears to be continuing, as employers face labour shortages and recent... 29th January 2018 · 1 min read
Japan Economics Update Bank of Japan too optimistic about inflation outlook For the first time since July 2014, the Bank of Japan didn’t lower its inflation forecasts any further. However, we believe that the Bank is too optimistic about the inflation outlook and we remain... 23rd January 2018 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Dec.) Bank lending has continued to slow. However, this doesn’t seem to reflect a tightening in bank lending attitudes, which remain very accommodative. What’s more, overall borrowing by the private sector... 15th January 2018 · 1 min read
Japan Economics Update Is the Bank of Japan about to raise its yield target? This week’s reduction in the Bank of Japan’s scheduled government bond purchases doesn’t signal that it is about to lift the yield target. The Bank purchases whatever is needed to maintain the target... 10th January 2018 · 1 min read
Japan Economics Update Price pressures strengthening again Japan’s November activity data suggest that the economy recorded an eighth consecutive quarter ofgrowth in Q4. And with the labour market the tightest in at least two decades, underlying... 2nd January 2018 · 1 min read
Japan Economics Update Weak price pressures will prevent BoJ from tightening A rising number of analysts believe that the BoJ will start tightening policy by the end of next year. But with inflation set to remain below its 2% target, we think that the Bank will keep policy... 21st December 2017 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Nov.) The Bank of Japan has been warning that low policy rates could eventually prove contractionary if they depress banks’ profits and capital and reduce their willingness to lend. In reality though... 19th December 2017 · 1 min read
Japan Economics Update What to make of the surge in producer prices? Producer prices in Japan are rising at the fastest pace in years but we still expect consumer price inflation to remain broadly flat in coming months. 18th December 2017 · 1 min read
Japan Economics Update Will the Bank of Japan soon start to tighten? Recent comments by BoJ Board members have trigged speculation that the Bank is considering a gradual withdrawal of monetary stimulus, in part to help Japan’s banks. But with inflation still rooted... 27th November 2017 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Oct.) Bank lending has slowed in recent months and the BoJ’s Senior Loan Officer Survey points to a further weakening in coming months. However, brisk corporate bond issuance and record corporate profits... 14th November 2017 · 1 min read
Japan Economics Update Will Japan benefit from the TPP minus the US? Even after the withdrawal of the US, the TPP remains an ambitious free trade agreement that will lower tariffs and non-tariff barriers for Japanese firms in a number of important trading partners and... 13th November 2017 · 1 min read
Japan Economics Update How free is Japan’s trade? President Trump drew attention this week to the difficulties US firms face trading with Japan. Japan’s tariff barriers are typically lower than those in the US but non-tariff barriers are... 8th November 2017 · 1 min read
Japan Economics Update Has Japan overcome deflation? Suggestions from Japan’s government that it has vanquished deflation are premature when wages are barely rising, core inflation is close to zero and inflation expectations are lower than a few years... 6th November 2017 · 1 min read
Japan Economics Update BoJ unlikely to tighten anytime soon The Bank of Japan still expects growth to exceed its sustainable rate both this year and next. However, sluggish price pressures forced the Board to slash its inflation forecasts yet again at today’s... 31st October 2017 · 1 min read
Japan Economics Update What to expect from PM Abe’s fourth term? We are re-sending this publication because the previous one contained an error. Mr Abe is now entering his fourth term as Prime Minister. Fiscal policy will probably be tightened further during PM Abe... 23rd October 2017 · 1 min read
