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2024

2023

  • Daiwa's Economic View - BoJ to put rate hike on hold this autumn

    Daiwa's Economic View - BoJ to put rate hike on hold this autumn

    17 September 2024 713 KB PDF
    • Japan weakened by heat waves, earthquakes, and typhoons in summer of 2024 Japan’s weaknesses: Low energy/food self-sufficiency, changing demographics
    • Paths Japan should take: Importance of fiscal soundness, promotion of energy policy Calls for “wise spending” ahead of LDP presidential election on 27 Sep Ishiba, Kono reviewing Abenomics, calling for monetary policy normalization
    • BoJ to put rate hike on hold this autumn; eyes on Governor Ueda’s press conference
  • Politics Watch

    Politics Watch

    13 September 2024 500 KB PDF
    • LDP presidential election announced, campaigning underway; focus on economic, fiscal, and monetary policies
  • Economic Commentary - Speech from BoJ Policy Board member Tamura

    Economic Commentary - Speech from BoJ Policy Board member Tamura

    13 September 2024 541 KB PDF
    • Hawkish Tamura corrected unintended impression of his March speech Wants monetary policy normalization, neutral interest rate of at least 1.0% Intends to proceed with gradual 25bp rate hikes by second half of projection period
    • Considers impact of short-term rate hike on households, businesses
    • Wage hike benefits vary by age group; spurring on economic metabolism
    • BOJ’s challenge is better communication with market
  • Economic Commentary - Jul Monthly Labour Survey: Reflects big wage hikes from spring labor-management wage negotiations

    Economic Commentary - Jul Monthly Labour Survey: Reflects big wage hikes from spring labor-management wage negotiations

    5 September 2024 532 KB PDF
    • Scheduled cash earnings (common data set, full-time employees) up 3.0%Y/Y; confirmed reflection of big wage hikes from spring negotiations, summer bonuses also strong
    • Various wage statistics also pin cash earnings at around up 3.0%Y/Y; increased likelihood of virtuous wage-price cycle, seen as catalyst supporting BOJ rate hikes 
    • Still, observed wage situation alone not enough to determine whether rates should be hiked; also need to check economic, political, financial, and capital market trends, both domestic and overseas
  • Daiwa's View

    Daiwa's View

    23 August 2024 424 KB PDF
    • JPY weakness not justified by real demand
  • Daiwa's Economic View

    Daiwa's Economic View

    23 August 2024 432 KB PDF
    • Prospects for general election, budget compilation after LDP presidential election and implications for monetary policy
  • Daiwa's Economic View

    Daiwa's Economic View

    19 August 2024 501 KB PDF
    • Apr-Jun 2024 real GDP improves, but weak underlying trend for private consumption
    • Economy expected to grow only moderately in FY24 as consumers remain thrifty, but inflation likely to hold near BoJ’s 2% price stability target
    • Next rate hike expected in Mar 2025, after assessing domestic/international economic conditions and results of 2025 spring labor-management wage negotiations
  • Daiwa's View

    Daiwa's View

    13 August 2024 461 KB PDF
    • Revising FX forecasts: Yen carry trade collapses