17 Dec 2014
Japan policies to remain accommodative - BNP
FXStreet (Guatemala) - Analysts at BNP Paribas noted that the landslide victory of Mr. Abe’s Liberal Democratic Party in the general election will assure that macroeconomic policies remain very accommodative.
Key Quotes:
“GDP growth may strengthen in the coming quarters, resulting in further labour market tightening”.
“As higher wage settlements will push up prices, inflation may exceed the BoJ’s 2% target in the course of 2016. Nevertheless, to prevent government spending spiralling out of control, the BoJ may feel compelled to continue buying treasury bills and JGBs even after 2016.
Key Quotes:
“GDP growth may strengthen in the coming quarters, resulting in further labour market tightening”.
“As higher wage settlements will push up prices, inflation may exceed the BoJ’s 2% target in the course of 2016. Nevertheless, to prevent government spending spiralling out of control, the BoJ may feel compelled to continue buying treasury bills and JGBs even after 2016.