26
Jun
The fall in the yen will push the boj into action
Japan is in recession. GDP may improve in Q3. Export rebound. Temporary upturn in inflation. Household confidence at half-mast. Yen at lowest level since 1986. Outlook for Nikkei still positive.
Key points
- Further contraction of the Japanese economy
- Improvement possible in Q3
- Further hesitation in leading indicators
- Household consumption remains subdued
- Falling yen boosts imported inflation
- BoJ prepares to raise rates to defend the yen
- Bond market still unattractive
- 38-year low for the yen against the US dollar
- Nikkei to break 40,000 barrier again
