Shinzo Abe – The third arrow in the limelight

The Bank of Japan is now geared towards new stimulus drawing attention on Shinzo Abe’s economic policies and raising sales tax is another issue he has to confront.   Additionally, Abe is pressurized to speed up performances in order to build up enhanced corporate governance, increase female contribution in the economy, emphasize on trade agreements and revamp the agricultural sector.   According to Masaaki Kanno, Chief Japan economist at JPMorgan Chase & Co, the government should review its priorities, focusing on new measures to boost growth and find more ways to build on fiscal policies.   The weakening of the yen will surely entail other complications and the Japanese authority cannot stay idle, letting matters go beyond control.   The BoJ today is defied with another sales tax hike estimated for October 2015. The 10% increase from 8% will definitely have repercussions.   Shinzo Abe has come up with three sturdy programs notably monetary easing from the central bank, fiscal spending and structural reforms.   Two of the strategies are already set up but the third one faces adversity with low enthusiasm from officials and farmers unwillingness to remove trade barriers.   Source: Reuters
Priscilla Camryn By: Priscilla Camryn
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