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Kuroda waves his wand again

  • The BoJ today defied expectations and unleashed a further expansion of its already massive QQE programme.
  • Not least by facilitating reforms to the GPIF pension fund, the new money  to be created by the BoJ will keep JGBs well supported, give a boost to domestic equities, and further weaken the yen.

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The BoJ's Tankan Survey: Steady as she goes

Today’s BoJ Tankan Survey was broadly upbeat, suggesting that business conditions are broadly favourable across a range of sectors, firms are ready to invest more, and the labour market is tight. So, despite some recent weak economic data, next week’s Policy Board meeting is unlikely to see the BoJ revise significantly its assessment of the economic outlook or signal the likelihood of extra stimulus.

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Japan's Q2 GDP: No show-stopper

Japan’s GDP plunged in Q2 at the steepest rate since the 2011 earthquake, with consumer spending plummeting at a record pace. But evidence points to a rebound in the current quarter. The BoJ won’t be panicked into easing policy further. And today’s data certainly do not represent a show-stopper for Abenomics.

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The Tankan and QQE: Carry on Regardless

Three months on from the consumption tax hike and Japan’s economy looks to be absorbing the shock as well as might reasonably have been hoped. That was the message from today’s Tankan survey.

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Abe’s 3rd Arrow: Flying or Dying?

The first two arrows of Abenomics have already made their mark. And with the latest structural reform strategy approved by Japan’s Cabinet today, is the third arrow also now about to fly?  

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