Takehiro Sato
Takehiro Sato
change election forward increase major push raising stance tax unlikely victory
Koizumi's major victory in the election may push forward discussions on raising the consumption tax. But Koizumi is unlikely to change his stance of not raising the tax during his tenure, so any tax increase would be after 2007.
bank governor japan letting officials recently senior signs tone
Governor Fukui and other Bank of Japan senior officials have strengthened their tone recently and show no signs of letting up.
abandoned interest policy rate zero
This amounts to a declaration that the zero interest rate policy could be abandoned at any time.
decline demand despite domestic due expected exports final headline quite report showing strong weak weaker
It's weaker than expected due to the decline of inventories, but final demand is quite strong. Basically, it's a strong report despite the weak headline number. Consumption and all domestic demand is firm. Exports are also strong, showing that demand is quite balanced.
due oil orders rebound recycling
We look for a rebound due to the recycling of oil money, such as in high-ticket orders from oil-producing nations.
far higher interest likely rates retreat strengthen
We think expectations of higher interest rates are far more likely to strengthen than to retreat significantly.