10 Jun 2013
Flash: Japanese recovers continues to surprise - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Japanese recovery has continued to surprise, in contrast to the stuttering Chinese economy.
He begins by noting that real GDP growth in Q1 revised upwards to an annualized rate of 4.1% from the initial estimate of 3.5% driven by upward revisions to private inventories and capital expenditure . Further, the government is scheduled to finalise its growth strategy on Friday. He sees that PM Abe told national broadcaster NHK over the weekend that he would push for a corporate tax cut after the Upper House election which has been confirmed will take place on the 21st July. He writes, “The BoJ is not expected to change its monetary policy stance at tomorrow’s meeting although may take measures to dampen volatility in the JGB market such as extending liquidity.”
He begins by noting that real GDP growth in Q1 revised upwards to an annualized rate of 4.1% from the initial estimate of 3.5% driven by upward revisions to private inventories and capital expenditure . Further, the government is scheduled to finalise its growth strategy on Friday. He sees that PM Abe told national broadcaster NHK over the weekend that he would push for a corporate tax cut after the Upper House election which has been confirmed will take place on the 21st July. He writes, “The BoJ is not expected to change its monetary policy stance at tomorrow’s meeting although may take measures to dampen volatility in the JGB market such as extending liquidity.”