Japan Economics Update BoJ still likely to ease more as dissenting voices increase The Bank of Japan threw no surprises in its monetary policy decision today and is under no immediate pressure to announce further easing. But with some board members still unconvinced that the... 22nd January 2014 · 1 min read
Japan Economics Update Could local politicians block the restart of nuclear energy? The upcoming gubernatorial election in Tokyo is being widely billed as a referendum on national energy policy, with one prominent candidate running on an anti-nuclear platform. However, the influence... 22nd January 2014 · 1 min read
Japan Economics Update Japan’s tourism resurgence won’t do much for economy Tourist arrivals to Japan have surged over the past year. While this is good news for businesses that cater to visitors, the broader macroeconomic implication are minor. Tourism-related spending... 13th January 2014 · 1 min read
Japan Economics Update Undervaluation unlikely to prevent further yen weakness The yen is now “undervalued” on most measures. However, deviations from fundamental value can, of course, persist for a very long time and should not prove an obstacle to fresh declines. We continue... 9th January 2014 · 1 min read
Japan Economics Update Bank of Japan's caution underlines easing bias The Bank of Japan’s widely-anticipated decision to maintain its current policy settings for the tenth successive Board meeting today is a testament to the boldness and clarity of the monetary easing... 20th December 2013 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Nov.) Despite a sharp fall in the money multiplier, the growth rates of bank lending and broad money reached fresh highs in November. 11th December 2013 · 1 min read
Japan Economics Update Talk of imminent monetary easing seems premature We continue to expect the Bank of Japan to announce further substantial monetary stimulus eventually, but those now speculating that it might act within the next few months are likely to be... 3rd December 2013 · 1 min read
Japan Economics Update How disruptive are tensions with China? The recent escalation of the conflict over the Senkaku islands may lead to renewed disruption of bilateral trade and investment between Japan and China. The experience from last year’s flare-up in... 27th November 2013 · 1 min read
Japan Economics Update Bank of Japan likely to keep its inflation target With even some members of the Bank of Japan’s Policy Board expecting inflation to remain well below the 2% target in FY 2015, there is growing speculation about how and when the Board will respond to... 26th November 2013 · 1 min read
Japan Economics Update Bank of Japan probably on hold until second half of 2014 The Bank of Japan’s decision to maintain the current pace of asset purchases after its Board meeting today was no surprise. Governor Kuroda emphasised the Bank’s willingness to ease further, but also... 21st November 2013 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Oct.) While the money supply grew at the fastest pace since the late 1990s in October, bank lending has decelerated slightly. But record low interest rates and easy lending standards should provide further... 18th November 2013 · 1 min read
Japan Economics Update Which indicators will be most affected by the sales tax hike? If Japan’s past is a guide, some spending will be brought forward ahead of April’s consumption tax hike and it will slump thereafter. The experience from the 1997 increase in the same tax suggests... 8th November 2013 · 1 min read
Japan Economics Update Bank of Japan in no hurry to ease further The BoJ today only marginally tweaked its economic forecasts, and took a sanguine view of the upcoming consumption tax hike. It was therefore no surprise that policy settings were left unchanged... 31st October 2013 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Sep.) Easy financial conditions and record-low bank lending rates continue to propel a strong expansion of the monetary aggregates and bank lending. 16th October 2013 · 1 min read
Japan Economics Update What to expect from the autumn Diet session The autumn Diet session is the first in which Prime Minister Abe’s coalition has a majority in both houses of the legislature and it will provide an important test of his ability to push through... 15th October 2013 · 1 min read
Global Markets Update Nikkei set to outperform again Japanese equities have dropped further than their peers so far this month and are among the most vulnerable to the fall-out from a potential US government default. Nonetheless, once the debt-ceiling... 9th October 2013 · 1 min read
