Even as the Bank of Japan’s new governor Haruhiko Kuroda is set to aggressively pump cash into the economy to revive it, he has warned that the country’s debt levels are “unsustainable”.
Kuroda has been brought in by new Prime Minister Shinzo Abe to back government stimulus measures, but one analyst is not hopeful that they will work:
Andrew Freris, Senior Investment Strategist for Asia with BNP Paribas Wealth Management, said: “My expectations are, unfortunately, this is exactly the same remedies we have been having in the last 15 years. Except this time they are multiplied, let’s say, by two. And I have my grave doubts whether they are going to be effective in changing structurally the Japanese economy, except providing a very welcome, but potentially short- to medium-term, boost to equity markets.”
Shares would rise with further stimulus, but so to would the risks of an economic bubble.
The central bank chief seems aware of that saying Japan’s public debt – at more than twice GDP – is “abnormal” as well as unsustainable, but apparently he is determined to push ahead anyway with what has been described as a monetary shock-and-awe campaign.
That is because Japan’s economy desperately needs answers. It is mired in low-grade deflation and has suffered four recessions since 2000. At the same time, an ageing population and weak consumption is gradually hollowing out much of the manufacturing base that provided the foundation for Japan’s modern economy.
Kuroda’s first scheduled policy meeting in charge of the Bank of Japan will be on April 3-4.
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International breaking news | euronews online world breaking news in video
- 3Caught red-handed: the Russian Major fighting in Ukraine
- 4Video footage shows massive explosion in Tianjin, China
- 5Momentum for Mars: Astronauts say mission is inevitable
- 6Ukraine puts top Russian general Gerasimov on ‘most wanted’ list
- 7Latest News Bulletin
- 8Snowden, Assange and Manning statues unveiled in Berlin
- 9Who came out top in the US Republican television debate?
- 10Why World Elephant Day matters
- 11UK: at least 7 dead after plane crashes into road in Brighton
- 12Virginia:TV journalist and cameraman shot dead live on air
- 13ISIL militant group claims to have killed Croatian hostage in Egypt
- 14Earth Overshoot Day…Pushing Mother Nature too far
- 15Windows 10, three weeks on: the good, the bad and the ugly
- 16International news | euronews, latest international news
- 17Bringing the trolls out of the dark: Russian ‘troll’ awarded 1 rouble damages
- 18As ‘Daily Show’ Jon Stewart’s tenure ends, scholars say goodbye to their research topic
- 19European Union News | euronews: latest breaking news and headlines about European Union
- 20Scientists find sinkhole cave under Mexico’s Kukulkan Castle Pyramid
Wires > Business
- 10:34 CET UK growth set to fall back after services sector weakens – PMI
- 10:08 CET Ex-BlueBay fund managers Phillips, Fayman to launch hedge fund in…
- 10:03 CET Euro zone August business growth at four-year high, still weak -…
- 08:55 CET Easyjet lifts profit outlook after record August traffic
- 07:50 CET Syngenta to sell vegetable seeds ops, repurchase shares
- 07:03 CET Irish services growth falls back in August from nine-year high -…
- 05:08 CET Australia retail sales post surprise dip in July, trade data better
- 04:10 CET Toshiba to post annual net loss of about 54 million pounds -…