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Weak wage growth to preclude tighter policy

While Japanese inflation will stay just above the Bank of Japan’s 2% target over the coming months, the Bank will not tighten policy at either the short or long end of the yield curve while wage growth and domestic demand remain weak.
Tom Learmouth Japan Economist
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The implications of an escalating Taiwan crisis

The extent to which neighbouring countries would be affected by an escalation of tensions between China and Taiwan would depend both on which sides they take and on the nature of restrictions imposed by the West and China. ASEAN countries are most reliant on China both as a source of imported inputs as well as a destination for exports, while major disruptions to semiconductor production in Taiwan would severely restrain Japan’s manufacturing industry despite its smaller trade links with China.

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Output will return to pre-virus trend eventually

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The rise and fall of Japan's energy imports

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More from Tom Learmouth

Japan Economics Weekly

Rising prices won’t prevent solid rebound in Q2

The renewed drop in industrial production and the weakness in retail sales volumes in April has raised concerns that Japan’s recovery will continue to disappoint. However, with consumer prices rising far less than elsewhere, Japan isn’t facing a cost-of-living crisis. Indeed, high frequency data suggest that consumption picked up pace in May as the Omicron wave subsided. The upshot is that we’re sticking to our upbeat forecasts for GDP growth for this quarter and next.  

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Japan Data Response

Labour Market, Industrial Prod. & Retail Sales (Apr. 22)

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Japan Economics Weekly

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