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Sep 30, 2015
JPY: Abenomics 2.0 is coming thick and fast – Rabobank
FXStreet (Delhi) – Michael Every, Research Analyst at Rabobank, notes that the Japan’s PM Abe has recently talked about launching “Abenomics 2.0”, which is welcome given Abenomics 1.0 was eventually as successful as Windows 8.
Key Quotes
“Abe aide Heizo Takenaka has just given us a clue what that entails in a media interview, stating “It would be good to do an extra budget in the autumn, then see how it goes and add more monetary easing.” So more QE, and more borrowing for the country with the highest public debt to GDP ratio in the world.”
“That JPY should still be below 120 as a safe-haven trade against that kind of policy backdrop says all one needs to know about our global problems. And on that note, Japan’s industrial production was -0.5% m-o-m in August vs. 1.0% expectations, while retail sales were flat m-o-m vs. 0.5% expectations, so “Abenomics 2.0” here we come.”
Key Quotes
“Abe aide Heizo Takenaka has just given us a clue what that entails in a media interview, stating “It would be good to do an extra budget in the autumn, then see how it goes and add more monetary easing.” So more QE, and more borrowing for the country with the highest public debt to GDP ratio in the world.”
“That JPY should still be below 120 as a safe-haven trade against that kind of policy backdrop says all one needs to know about our global problems. And on that note, Japan’s industrial production was -0.5% m-o-m in August vs. 1.0% expectations, while retail sales were flat m-o-m vs. 0.5% expectations, so “Abenomics 2.0” here we come.”