Japanese Banks See Economy Withstanding Sales Tax Increase
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Japan’s economy will probably withstand a sales tax increase that takes effect today as Prime Minister Shinzo Abe prepares economic stimulus measures and companies raise wages, the country’s new bank lobby chief said.
Abe remains on track to achieve his goal of ending deflation after embarking on unprecedented monetary easing and fiscal spending a year ago, Nobuyuki Hirano, who replaced Takeshi Kunibe today as chairman of the Japanese Bankers Association, said in an interview. Hirano is president of Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank.