Japan Economics Update Monetary Indicators Monitor (Sep.) Credit growth slowed slightly in the second quarter but remains very strong by past standards. However, this has yet to result in a marked increase in private sector indebtedness. 16th October 2017 · 1 min read
Japan Economics Update BoJ’s JGB purchases to slow further The Bank of Japan’s purchases of JGBs have now fallen to around ¥60 trillion per annum and they are likely to be cut further to ¥40 trillion over the next couple of years. However, this shouldn’t have... 9th October 2017 · 1 min read
Japan Economics Update What would Yurinomics mean for Japan? Yuriko Koike’s Party of Hope has pledged to rely less on loose fiscal and monetary policy if it wins the upcoming election. But in practice its proposals, which include delaying the sales tax hike... 6th October 2017 · 1 min read
Japan Economics Update Snap election puts tax hike back onto agenda Japan’s ruling coalition should emerge victorious from the upcoming Lower House elections but “Abenomics” has long since run out of momentum and so there is little prospect of meaningful structural... 25th September 2017 · 1 min read
Japan Economics Update BoJ’s growth optimism won’t translate into tighter policy The Bank of Japan left its upbeat assessment of economic conditions intact at today’s meeting. But inflation remains a long way below its projections, so further reductions in the Board’s forecasts... 21st September 2017 · 1 min read
Japan Economics Update Snap elections could leave PM Abe with last laugh With the opposition in disarray and support for the ruling coalition rebounding, the government may well retain its two-thirds majority in the Lower House if it called a snap election. The chances of... 18th September 2017 · 1 min read
Japan Economics Update Is online retailing keeping price pressures subdued? One reason put forward recently for the weakness of price pressures in Japan is that a boom in e-commerce is keeping a lid on prices. However, we find no evidence that this is having a major impact. 13th September 2017 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Aug.) Bank lending rates remain very low and corporate profits have climbed to record highs. Companies are in rude financial health as a result and the number of bankruptcies has dropped to levels not seen... 12th September 2017 · 1 min read
Japan Economics Update Would the yen remain a safe haven during a Korean War? The experience of the last couple of weeks suggests that gold might be the better safe haven choice if war were to break out on the Korean peninsula. Nonetheless, on the evidence of past crises, the... 8th September 2017 · 1 min read
Japan Economics Update How vulnerable would Japan be if war broke out in Korea? South Korea is an important trading partner so Japan would not remain unscathed even if war in Korea didn’t involve Japan directly. And if North Korea fired missiles at Japan, potential losses could... 4th September 2017 · 1 min read
Japan Economics Update Further yen weakness and Nikkei upside limited Having appreciated against the dollar over recent weeks, the yen initially strengthened further when news of the North Korean missile launch broke yesterday. Despite this, we continue to expect the... 30th August 2017 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Jul.) While domestic loan growth has picked up in recent years, lending to foreign borrowers has risen much faster over the past decade. Japan is now the single-largest provider of cross-border lending. 10th August 2017 · 1 min read
Japan Economics Update Is the Bank of Japan giving up on its 2% inflation target? Comments today by BoJ Board Member Funo suggest that the Bank has given up on reaching its inflation target any time soon. Market expectations of policy tightening are likely to recede further as a... 2nd August 2017 · 1 min read
Japan Economics Update Is faster productivity growth holding back service inflation? We’re not much convinced by suggestions from the Bank of Japan that firms cutting back on the hours their employees work has contributed to the continued lack of inflation pressure. Very low and... 25th July 2017 · 1 min read
Japan Economics Update Further reductions to Board’s inflation forecasts still needed The Bank of Japan upgraded its assessment of the economy yet again at today’s meeting. But the Board’s inflation forecasts remain far too optimistic even after renewed downgrades. We reiterate our... 20th July 2017 · 1 min read
Japan Economics Update Looking beyond Abe The popularity of the government has suffered severely recently and there is now a real chance that Mr Abe will be out of office before the next legislative elections. A change of prime minister could... 19th July 2017 · 1 min read
