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No signs of stress in Japan’s financial markets

There has so far been no sign of stress in Japan’s financial markets as a result of the banking crises in the US and the demise of Credit Suisse. Meanwhile, the government has announced another spending package that will boost disposable incomes. We have revised up our private consumption forecast in response. The package also includes a subsidy to lower liquefied petroleum gas prices though details have yet to be revealed. Either way, with natural gas import prices now plunging, gas inflation will continue to slow.

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