8 Aug 2013
Flash: BoJ latest in series of central banks advocating changes – Deutsche Bank
FXstreet.com (New York) - There’s been a fair bit of focus on central banking action in Japan, China and Australia recently, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Key quotes
Starting with Japan, the BoJ concluded its latest meeting by keeping monetary policy unchanged by unanimous vote as was widely expected.
Mr Kuroda has said previously that he believes the economy would not suffer a significant setback if domestic taxes be doubled to 10% as planned over two stages beginning in April next year.
An IMF commentary earlier this week said the tax hike was an “essential first step” to reforming Japan’s fiscal situation. However, “a key adviser to PM Abe is advocating a gradual implementation of tax increases in 1% annual increments (Nikkei.com) but he said that Abe faces resistance within his own cabinet. Meanwhile, Abe has set up an expert panel with members including Deputy PM Taro Aso, Economy Minister Amari and Governor Kuroda to study the impact of tax increases on consumer spending.”
Key quotes
Starting with Japan, the BoJ concluded its latest meeting by keeping monetary policy unchanged by unanimous vote as was widely expected.
Mr Kuroda has said previously that he believes the economy would not suffer a significant setback if domestic taxes be doubled to 10% as planned over two stages beginning in April next year.
An IMF commentary earlier this week said the tax hike was an “essential first step” to reforming Japan’s fiscal situation. However, “a key adviser to PM Abe is advocating a gradual implementation of tax increases in 1% annual increments (Nikkei.com) but he said that Abe faces resistance within his own cabinet. Meanwhile, Abe has set up an expert panel with members including Deputy PM Taro Aso, Economy Minister Amari and Governor Kuroda to study the impact of tax increases on consumer spending.”