31
Aug
The rise of the yen threatens the Nikkei
Growth has stabilized at a moderate pace. Consumers remain hesitant.
Persistent but limited inflationary risks. BoJ stays on course. Steepening of the yield curve. Likely appreciation of the yen. Consolidation of the Nikkei.
Key points
- GDP momentum slows in Q2
- Q3: Balancing domestic recovery and external risks
- Shift in leading indicators
- Household confidence stabilizing
- Inflation between buffers and input pressures
- The BoJ’s dilemma and trade-offs in the face of the currency shock
- Sharp steepening of the yield curve
- Conditions finally in place for a yen appreciation
- Mixed outlook for Japanese stocks
