Just after the Abe government is closing its first year it will be publishing a report on the state of the Japanese economy. A word that will be missing in that document is probably the biggest achievement of Shinzo Abe’s second term leading Japan. After campaigning with a bold promise to reignite the Japanese economy and rid it of the more than 15 years of deflation, the word will not be found in his report. The first arrow of his three arrow strategy has done most of the heavy lifting. Monetary policy which was just maintained this week and the Fed decision to taper its bond-buying further support Abe’s inflationary path.
This will be the first time in four years that the word “deflation” is not used in a Japanese monthly economic report.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.