Japanese CPI numbers are expected this Thursday but the values will be nowhere near where PM Shinzo Abe will want them. The Bank of Japan (BOJ) is targeting 2% but values are expected remain around -0.4 to -0.5%. The one silver lining is that the number has not dived deeper into negative territory. Abe’s recently announced $45bn package is currently being supported by BOJ easing and low-interest rates. There are reports of an over $30bn budget being prepared for next month to support Abe’s plan. However, the truth remains that Japanese trade is falling and Chinese growth expected to slow down further. Japan needs a change, possibly in tax reform or dropping in money to boost domestic consumption.
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