Japan: Abe’s fiscal policy plan is likely worth more than ¥10t - TDS

Research Team at TDS, notes that the Nikkei reports the BoJ will weigh the recovery in resource prices and prospects for a pick up in public and private spending against the impact of Brexit in its July Quarterly Outlook, which will accompany the Bank’s rate decision on 29th July.

Key Quotes

“The Nikkei reports Abe’s fiscal policy plan is likely worth more than ¥10t.  Later Hamada, the PM’s advisor appeared to downplay BoJ easing potential stating ‘Can’t say with absolute certainty’ if BoJ must ease on 29th July. He also said that tightening labour market meant there was no need to discuss easing at every policy.”