Japan: Growth expectations continue to rise – Standard Chartered

In view of the analysts at Standard Chartered, Japanese growth has picked up, but wage talks are still disappointing.

Key Quotes

“Japan’s economic growth expectations continue to be revised higher, with consensus 2017 growth now projected at 1.2%, up from 0.8% forecast in December. Last year’s fiscal stimulus, low borrowing costs and a pick-up in global demand have boosted exports. However, annual wage negotiations have led to meagre gains yet again, undermining PM Abe’s efforts to revive domestic consumption.”    

“BoJ unlikely to tighten policy soon: Although Japan’s deflation has abated, core inflation remains well below the BoJ’s 2% target. We do not expect the BoJ to tighten policy by raising its 10-year JGB yield target anytime soon.”