JPY: Nikkei reports stimulus package likely before G7 summit - Nomura

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Tomo Kinoshita, Research Analyst at Nomura, suggests that the Nikkei article says stimulus package is forthcoming before G7 summit in late May.

    Key Quotes

    “On 27 March, the Nikkei reported that the Abe government plans to put together an economic stimulus package to boost Japan’s slumping economy prior to the G7 summit to be held in Ise-Shima on 26–27 May. The article said that members of the government and ruling parties are considering a ¥5trn-plus package or a package of around ¥10trn.

    The article echoed the Sankei Shimbun’s 17 March report that the government would likely present a large FY16 supplementary budget to the extraordinary Diet session to be held before this autumn.

    At the G20 meeting of finance ministers and central bank heads in Shanghai at end-February, the world’s financial leaders pledged to use fiscal policies flexibly. With Jan–Mar 2016 increasingly looking to be the Japanese economy’s second-straight quarter of negative growth, the government's plan to introduce an economic stimulus package of course is pointed at the upcoming House of Councillors election this summer.

    However, the Abe government also apparently hopes to incorporate contributions to international society into the package and demonstrate Japan’s ability to exert international leadership at the G7 summit.”
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