Japan Sales Tax Decision Due in Early October

Japanese Prime Minister Shinzo Abe will make a decision on a sales-tax increase by early October, before a gathering of Asia-Pacific leaders in Indonesia, according to Economy Minister Akira Amari.
Abe will decide “at the latest” before a summit of leaders from the Asia-Pacific Economic Cooperation forum, which starts in Indonesia on Oct. 7, Amari said yesterday on NHK television.
Expert panels comprising business leaders, academics and policy makers are set to begin meetings today to consider if Japan’s economy is strong enough to withstand an increase in the tax. Gross domestic product grew an annualized 2.6 percent in the second quarter from the previous period, a result which Finance Minister Taro Aso said supported the case for an increase.
Amari said last week that there is a good balance of views on the panels, which will include Abe advisers Etsuro Honda and Koichi Hamada, who are cautious about increasing the levy.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza