Japan policies to remain accommodative - BNP

FXStreet (Guatemala) - Analysts at BNP Paribas noted that the landslide victory of Mr. Abe’s Liberal Democratic Party in the general election will assure that macroeconomic policies remain very accommodative.

Key Quotes:

“GDP growth may strengthen in the coming quarters, resulting in further labour market tightening”.

“As higher wage settlements will push up prices, inflation may exceed the BoJ’s 2% target in the course of 2016. Nevertheless, to prevent government spending spiralling out of control, the BoJ may feel compelled to continue buying treasury bills and JGBs even after 2016.