25 Aug 2015
Further stimulus by the BoJ? – BBH
FXStreet (Edinburgh) - Analysts at BBH have reviewed the recent comments by Hamada, who suggested the Japanese economy could need extra boost in case of disappointing GDP figures.
Key Quotes
“Hamada, an advisor to Japan PM Abe, fuelled calls for authorities to take more action”.
“Hamada said the Japanese economy will need both monetary easing and fiscal stimulus if GDP growth is zero or negative in 3Q”.
“He also suggested that the BOJ should ease further if China policy causes a strong yen”.
“Japanese officials have been much more vocal about the current market situation than most officials in G10. This is due to the perception that a strong yen and weaker Chinese growth could block the 2% inflation target and other Abenomics objections”.
“Private consumption remains tamed even though real income recovers and lower energy prices increase disposable income. This could be in part due to the negative wealth effect of lower Japanese stock prices”.
Key Quotes
“Hamada, an advisor to Japan PM Abe, fuelled calls for authorities to take more action”.
“Hamada said the Japanese economy will need both monetary easing and fiscal stimulus if GDP growth is zero or negative in 3Q”.
“He also suggested that the BOJ should ease further if China policy causes a strong yen”.
“Japanese officials have been much more vocal about the current market situation than most officials in G10. This is due to the perception that a strong yen and weaker Chinese growth could block the 2% inflation target and other Abenomics objections”.
“Private consumption remains tamed even though real income recovers and lower energy prices increase disposable income. This could be in part due to the negative wealth effect of lower Japanese stock prices”.