Japan Economics Update Japan’s hopes for the TPP dead and buried The yen may strengthen a little further as increased uncertainty adds to safe haven demand, and Japanese exporters may face a less welcoming environment for trade. But, for Japan, the key immediate... 9th November 2016 · 1 min read
Japan Economics Update Baton passing to fiscal policy as BoJ reluctant to ease The Bank of Japan today pushed back the timing for hitting its inflation target and sounded alarmed about the recent moderation in price pressures, but nonetheless refrained from providing more... 1st November 2016 · 1 min read
Japan Economics Update Japan well placed to cope with higher energy prices Japan’s economy has become less reliant on imported energy in recent years as electricity consumption has fallen sharply. With consumers having stepped up savings over the past two years, the country... 18th October 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Sep.) Bank lending picked up in September and a broader measure of private sector credit expanded at the fastest pace since the launch of QQE in Q2. Meanwhile, low returns at home have encouraged Japanese... 17th October 2016 · 1 min read
Japan Economics Update What would President Trump mean for Japan? We wouldn’t be overly concerned about a US tariff on Japanese imports should Donald Trump become president, as Japanese manufacturers mostly serve their US customers from their US subsidiaries. By... 5th October 2016 · 1 min read
Japan Economics Update How will the BoJ conduct policy in future? The key tool for monetary loosening in the Bank of Japan’s new framework will be the short-termpolicy rate, which now stands at -0.1%, rather than the new target for 10-year JGB yields. 22nd September 2016 · 1 min read
Japan Economics Update Bank of Japan will have to lower policy rate further The Bank of Japan’s decision to replace its target for the monetary base with a target for 10-year government bond yields has prolonged the lifespan of QQE. However, it hasn’t improved the near term... 21st September 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Aug.) Negative interest rates are undermining the profitability of financial institutions asbanks have slashed lending rates. However, lower borrowing costs have yet to resultin stronger credit demand. 19th September 2016 · 1 min read
Japan Economics Update Why is wage growth not picking up? The tight labour market in Japan is delivering pay increases for younger workers willing to move jobs, but a low level of labour market mobility and a rising share of older workers, for whom pay rises... 30th August 2016 · 1 min read
Japan Economics Update Governor Kuroda is mulling another policy surprise Amid rising concerns that the BoJ’s large-scale purchases of Japanese Government Bonds cannot be sustained for much longer, policymakers are mulling the introduction of an explicit target for long... 17th August 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Jul.) The conventional wisdom is that the Bank of Japan’s large-scale bond purchases will soon dry up the pool of available assets. By contrast, we believe that QQE can continue for several more years. One... 12th August 2016 · 1 min read
Japan Economics Update Stimulus package doesn’t let the BoJ off the hook The fiscal stimulus package approved by the Cabinet today will boost growth by much less than the headline figure suggests. As such, the Bank of Japan still has more work to do reach its 2% inflation... 2nd August 2016 · 1 min read
Japan Economics Update Bank of Japan not done yet The Bank of Japan’s decision to refrain from meaningful easing once again today has disappointedinvestors and resulted in a renewed strengthening of the yen. While we still expect the Bank to domore... 29th July 2016 · 1 min read
Japan Economics Update Don’t believe the fiscal hype Prime Minister Abe’s announcement of a huge fiscal stimulus package today provided fresh impetus to Japan’s stock market and resulted in another decline of the yen against the dollar, but the news... 27th July 2016 · 1 min read
Japan Economics Update Monetary Indicators Monitor Some investors in Japan have responded to the introduction of negative interest ratesby acquiring more overseas securities. Meanwhile, bank lending rates have fallen butthe availability of cheaper... 20th July 2016 · 1 min read
Japan Economics Update Is the Bank of Japan already delivering “helicopter money”? Speculation that the Bank of Japan has already embarked on “helicopter money” are wide off the mark. While we believe the measure would provide a solution to the country’s debt woes, the helicopter... 18th July 2016 · 1 min read
