21 Aug 2013
Abe seen adopting 1% incremental sales tax for 5 years - Morgan Stanley
FXstreet.com (Barcelona) - According to Morgan Stanley, Japanese PM Mr. Abe is expected to raise tax by 1% a year for 5 years, with the first hike due on April 2014.
As reported in recent week, "If the 1% increments are approved, the risk if that the Yen may enjoy further strength, as the market sees this option as a temporary formula allowing the economy to continuously grow while not being that badly hurt by the tax hike, which leads to the belief of no additional easing by the BoJ necessary unless signs of a significant slowdown emerge."
As reported in recent week, "If the 1% increments are approved, the risk if that the Yen may enjoy further strength, as the market sees this option as a temporary formula allowing the economy to continuously grow while not being that badly hurt by the tax hike, which leads to the belief of no additional easing by the BoJ necessary unless signs of a significant slowdown emerge."