Japan’s economy has made a poor start to the year and, with the sales tax hike looming and export demand likely to be subdued, GDP growth will remain well below trend both this year and next. The labour market may therefore soon start to slacken again, bringing inflation closer to zero. However, with the BoJ’s arsenal largely depleted, we don’t expect additional monetary stimulus.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.