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29 Dec 2014
Yen pressured by Abe - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted actions from Japan from the weekend weighing n the Yen.
Key Quotes:
"Complementing the unorthodox Bank of Japan monetary policy, the Abe cabinet approved a JPY3.5 trillion supplemental budget over the weekend. It estimates this spending will boost GDP by 0.7 percentage points."
"It has been under preparation for a couple of months, but follows on the heels of disappointing and unexpected declines in industrial production and retail sales. Despite the BOJ expanding its balance sheet by 1.4% of GDP a month and the decline in the yen, inflation pressures continue to subside."
"The supplemental budget will be financed by tax revenue anticipated by the stronger growth and unspent funds. About half of it will be used to public works."
"Of the remaining half, a third will be used to revitalize regional economies and two-thirds on programs to help households (e.g. shopping vouchers and subsidized heating fuel for low income households) and small businesses (low interest rate loans for businesses hurt by rising input costs, i.e., weak yen)."
Key Quotes:
"Complementing the unorthodox Bank of Japan monetary policy, the Abe cabinet approved a JPY3.5 trillion supplemental budget over the weekend. It estimates this spending will boost GDP by 0.7 percentage points."
"It has been under preparation for a couple of months, but follows on the heels of disappointing and unexpected declines in industrial production and retail sales. Despite the BOJ expanding its balance sheet by 1.4% of GDP a month and the decline in the yen, inflation pressures continue to subside."
"The supplemental budget will be financed by tax revenue anticipated by the stronger growth and unspent funds. About half of it will be used to public works."
"Of the remaining half, a third will be used to revitalize regional economies and two-thirds on programs to help households (e.g. shopping vouchers and subsidized heating fuel for low income households) and small businesses (low interest rate loans for businesses hurt by rising input costs, i.e., weak yen)."