Fitch affirms Japan at 'A'; outlook Stable
|In its latest review, Fitch Ratings affirmed Japan’s sovereign credit rating at ‘A’ while maintaining a ‘stable’ outlook.
Key takeaways
Expect Japan's general government (GG) deficit to narrow to about 5% of GDP in the fiscal year ending march 2023 (fFY22).
Forecast real GDP growth for japan at 1.3% in 2023.
Higher energy prices and Yen depreciation spurred inflation in Japan, we forecast to average 2.7% in 2023.
Base case remains that BoJ will maintain its loose monetary policy over medium term.
Market reaction
USD/JPY is battling 132.00, as the Japanese Yen ignores the upbeat outlook from Fitch Ratings. The spot is up 0.85% on the day.
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