Weekly Commentary – what may Abe government think?
In a recent survey, it showed Japanese Prime Minister Shinzo Abe's party is highly possible to get victory in a parliamentary election later this month. Now markets change their focus on whether Abe push bold measures to stimulate economic growth. In fact, since Mr. Abe became prime minister last December, stock prices has been boosted by nearly 40% and the yen's value been cut by nearly 20%.
Beside whether stimulating economic growth policy will be pushed, the prime minister must also decide whether to go forward with the plan of increasing national consumption tax, which was passed by the previous Democratic Party. According to Abe government promise, a final decision will be made around October, and the key factor in the decision will be economic-growth data for second quarter this year, which will be announced in mid-August.
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