Japanese economy: key events in 2016 – Nomura

By FXStreet FXStreet (Delhi) – Research Team at Nomura, lists down the key events of Japanese economy for 2016.

Key Quotes

“Summary (1) Four events for monetary policy

Four events with major implications for monetary policy in 2016 that we see are (1) changes to the Bank of Japan’s official communications, (2) changes to Policy Board personnel, (3) a possible decision by the government to declare an end to deflation, and (4) the base revision of the CPI. The stance of new Policy Board members, the importance of the 2% price stability target, and revisions to inflation data are all expected to influence the course of monetary policy in 2016.

Summary (2) Outcome of spring wage talks

Modest demands by labor unions are a downside risk to the outcome of the wage negotiations. But given government pressure for pay hikes and its scope for further action, we do not see it as a significant risk for now.

Summary (3) Main political event: Upper House election

Large gains by the ruling coalition would boost expectations of Japanese growth. Meanwhile, the loss of a substantial number of seats (risk scenario) would shake the government’s foundations. Issues ripe for exploitation by the opposition include revisions to security legislation, the …read more

Source:: FX Street