Economics
World's Most Daring Monetary Experiment Powers on With Abe's Win
- Abe’s re-election green lights Bank of Japan’s easing program
- BOJ to be at odds with global peers nudging toward tightening
Shinzo Abe's Coalition Retains Two-Thirds Majority
This article is for subscribers only.
Prime Minister Shinzo Abe’s solid election win green lights a continuation of the Bank of Japan’s massive economic stimulus, entrenching a divide with global peers who are either heading in the opposite direction or mulling moves to do so.
While growth in the world’s third-largest economy has picked up, inflation remains nowhere close to the BOJ’s 2 percent target. Continued easing means Japan should remain a source of liquidity for the world economy and especially emerging markets in Asia that are vulnerable to rising interest rates.