Japan’s drop back into recession will strengthen the disinflationary pressures in the economy and reinforces the divergence in the prospects for monetary policy relative to those in the US. As a result, we now expect the yen to fall to 140 against the dollar next year, although Japanese equities should at least benefit from further currency weakness.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.