Japan: Political turmoil clouds policy outlook - ANZ
|Analysts at ANZ note that there has been a sharp drop in approval ratings for both Japanese Prime Minister, Shinzo Abe, and his cabinet, amid a rekindling of the Moritomo Gakuen scandal.
Key Quotes
“The scandal seems likely to linger, making the political situation uncertain and potentially destabilising. Indeed, the future of PM Abe is under a cloud.”
“Should Abe be unseated as LDP leader, the macro policy framework is likely to result in less stimulatory fiscal and monetary policy compared to that adopted under Abenomics. This could result in higher rates and a strengthening in the JPY.”
“If Abe remains as leader, there is likely to be a few different ways policy could pan out: business as usual; a compromise, resulting in slightly less stimulatory policy; or an accelerated reflation effort. The more secure Abe’s leadership position is, the more stimulatory policy could become.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.