Japan's fiscal stance is turning more expansionary, but we think concerns about the public finances are overdone. The budget deficit is likely to remain contained, while both gross and net debt ratios should continue to fall. Meanwhile, banks are absorbing a larger share of JGBs as the BoJ scales back its purchases, helping to keep financing pressures contained.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
