Japan Economics Weekly Q3 bright spots fade, better lies ahead The past week’s data cast a shadow over some of the few remaining bright spots in Q3. Next week’s GDP release is very likely to show that Japan’s economy contracted for a second time this year... 9th November 2018 · 1 min read
Japan Economics Weekly Immigration door opens a little further The new types of work visas Japan’s government plans to introduce in April will probably result in an even greater inflow of foreign workers over the coming years. That’s a step in the right direction... 2nd November 2018 · 1 min read
Japan Economics Weekly Regional banks in the spotlight, Abe in China We still think that the solution to the continued fall in regional banks’ capital ratios is a reduction in the number of lenders rather than an increase in the BoJ’s 10-year yield target. Japan’s... 26th October 2018 · 1 min read
Japan Economics Weekly BoJ to slow bond purchases, but not due to US US insistence that provisions against currency manipulation be a part of any future trade deal with Japan has raised suggestions this week that Japanese policymakers, particularly those at the Bank of... 19th October 2018 · 1 min read
Japan Economics Weekly Banks still struggling, another look at Japan’s debts The government has indicated that it will be more lenient in applying antimonopoly legislation when assessing regional bank mergers. That should pave the way for a further consolidation of... 12th October 2018 · 1 min read
Japan Economics Weekly Households remain gloomy, yen to strengthen again Japan’s labour market is as strong as most of today’s workers will ever have known, which makes the persistent weakness of consumption all the more puzzling. Spending remains flat according to data... 5th October 2018 · 1 min read
Japan Economics Weekly Carmakers get a reprieve, the BoJ’s case for easing Japan’s government this week caved to US pressure to start discussions on a bilateral trade deal. But it appears to have won some valuable concessions in return. Meanwhile, we learnt more about what... 28th September 2018 · 1 min read
Japan Economics Weekly Loose monetary policy not undermining bank lending Recent comments by Prime Minister Abe suggest that he is no longer obsessed with overcoming deflation and would like the Bank of Japan to focus more on the financial stability part of its mandate... 21st September 2018 · 1 min read
Japan Economics Weekly Japanese exporters back in the firing line Recent comments by President Trump suggest that he may target Japan next in his efforts to reduce the US trade deficit. Trump may want Japan to increase pressure on China to end unfair trading... 14th September 2018 · 1 min read
Japan Economics Weekly Abe delaying retirement, Q2 growth strong Prime Minister Abe is set to remain in power for another three years following the LDP leadership elections. One of the few substantive reform proposals he has put forward is an increase in the... 7th September 2018 · 1 min read
Japan Economics Weekly Growth probably slowed in Q3 This week’s activity data for July were rather weak. The 0.1% m/m rise in retail sales values wasn’t too bad given that sales had jumped by 1.4% m/m in June. But consumer goods prices rose by 0.7% m/m... 31st August 2018 · 1 min read
Japan Economics Weekly Inflation set to pick up Inflation has been held back by plunging mobile phone costs and competition from online retailers. The main factor, however, are deeply engrained deflationary expectations among households and firms... 24th August 2018 · 1 min read
Japan Economics Weekly Turkish contagion, BoJ’s helping hand A former BoJ executive suggested that the Bank of Japan may tolerate 10-year yields rising to 0.4% even while keeping its official target at zero. This would lift trading income, increase returns on... 17th August 2018 · 1 min read
Japan Economics Weekly BoJ's cold feet, consumer spending boycott Media reports suggest that the Bank of Japan was close to hiking rates twice this year. But the decision to allow ten-year yields to rise a bit further above the 0% target placated the hawks on the... 10th August 2018 · 1 min read
Japan Economics Weekly BoJ tested, GDP rebounding The outlines of the Bank of Japan’s new policy framework have become clearer during the week: a more flexible approach to intervention, a focus on preventing sharp moves, but also a tolerance of... 3rd August 2018 · 1 min read
Japan Economics Weekly High expectations for BoJ, doors open for immigration Bond market participants appear convinced that something substantive will come from next week’s Bank of Japan meeting. But if the Bank did anything that was perceived as backing away from the... 27th July 2018 · 1 min read
