New Japanese Prime Minister Ishiba commented today, that the country will carry over former Kishida's economic policy, to ensure Japan makes a complete exit from deflation. Ishiba hopes that 'BoJ maintains easy monetary policy as a trend '. However, Ishiba didn't comment on specific rate policy. However, not every Ishiba's comment was very dovish today.
- The New PM would like also to maintain accomodative BoJ policy to help low income Japanese households.
- Despite some investors, raising concerns around potentially 'hawkish' Ishiba stance, today comments put an end to it, signalling no massive 'sea change' in Japanese economy.
- However, if deflation trend will finally end (and it's a basic scenario, also according to Ishiba), the bank may be forced to increase interest rates, even despite overall 'dovish' tone and intentions.
- Ishiba commented also, that Japan will push fiscal policy to help 'deflation ending', focusing on higher wages and investment.
- Especially the first aspect may be very inflationary, so markets will await more for macro readings from Japan, than for further Ishiba and other BoJ members comments.
Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
