In the media | 28 Jul 2023

CNBC: The Bank of Japan is preparing for both upside and downside risks, economist says

Shigeto Nagai

Head of Japan Economics

Shigeto Nagai, Head of Japan Economics at Oxford Economics, joins CNBC to discuss the BoJ’s decision to make its yield curve control policy more flexible.

Watch the interview below:

To download our latest reports for Japan, please check Resource Hub – Oxford Economics.

You may be interested in

Post

Japan’s worsening fiscal outlook raises risk of higher term premium

We expect Japan's fiscal outlook to deteriorate due to weak economic growth and pressure on the government to implement fiscal stimulus. We don't think deficit concerns drove the recent spike in ultra-long Japanese government bond (JGB) yields, but as domestic purchasers reduce their JGB holdings, long-term yields could become more sensitive to fiscal developments in the coming quarters, raising the risk of a higher term premium.

Find Out More

Post

Identifying future manufacturing hot spots in Japan

Japan's industries, which are exposed more to international demand than to tepid domestic demand, are often concentrated in certain cities. This makes these cities more dynamic than others, a feature masked when only looking at national data. Understanding the industrial landscape helps identify growth opportunities across various sectors, as job creation and incomes drive spending.

Find Out More

Post

Tariff turbulence will diminish the BoJ’s chance of rate hike

The Bank of Japan kept its policy rate at 0.5% at Thursday's meeting. Considering the significant downgrading of growth and inflation forecasts in its Quarterly Outlook Report, the central bank will likely take a long pause to assess the impact of high global trade policy uncertainty on growth and inflation.

Find Out More