Home/Newsfeed

Fiscal Stimulus the Next Step for Japan

Share Print 0

Japanese policymakers are starting to see fiscal stimulus as the most likely next step to spark economic growth given the central bank’s dwindling monetary ammunition and uncertainty over the agenda of U.S. president-elect Donald Trump.

The market turbulence caused by Trump’s victory has unnerved policymakers, and offers an opportunity for lawmakers favoring bigger fiscal spending to press their case, with another supplementary budget for this year a possible first step.

And the Bank of Japan’s new monetary policy target of keeping the 10-year government bond yield near zero percent presents an opportunity to lock in long-term borrowing with virtually no interest cost to fund spending plans.

Reuters

EM Trump Slump or Trump Dump

USD/CAD – Trump Shock Pushes Canadian Dollar to 8-month Low

Trump Risk Casts Shadow Over Chinese Data

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Back to Top