OctaFX | OctaFX Forex Broker
Open trading account
Back

S&P: Japan sales tax hike may be credit negative

FXStreet (Bali) - According to the rating agency Standard & Poors, via Reuters, the planned Japan sales tax hike for next year - second in a row - may be credit negative if it harms economy.

As Reuters notes, citing a senior official of S&P: "Japan’s plan to raise its sales tax for the second year in a row next year may not be positive for the country’s credit rating if it snuffs out any chance of economic recovery,

Reuters adds, citing Takahira Ogawa, director of sovereign ratings at the agency: "If the government were to delay next year’s tax increase, it would still need to cut welfare spending and push through structural reforms to accelerate economic growth."

At present, as Reuters informs, S&P has an AA- rating on Japan, which is three notches below the top rating of AAA, with a negative outlook, implying that a downgrade is a possibility.

BoJ's Kuroda keeps familiar stance, further QQE Q1 or Q2 2015?

Yesterday, we saw BOJ Gov. Kuroda testifying at the Upper House Finance/Budget ommittee, with the Central Banker reiterating the same position on easing and the yen, that is, saying that for now there is “no need to act on further easing” and that “weak yen is good as long as it reflects fundamentals.”
Read more Previous

RBNZ: Tightening cycle to become conditional - Westpac

Imre Speizer, FX Strategist at Westpac, notes that in tomorrow's RBNZ meeting, the OCR is expected to remain unchanged at 3.50%, the pause duration to extend, and the resumption of the tightening cycle to become conditional.
Read more Next
Start livechat