Date archive: February 2013

Japan The Japanese authorities have revised upwards their assessment of their economy, including an expected increase in consumer spending and industrial output, though it will not change their policy of embarking on a significant monetary and fiscal stimulus programme, full details of which will be announced in coming weeks;   China Analysts are raising inflation…

Australia Australian deputy governor Mr Guy Debelle states that the A$ is not high enough to justify intervention. However, he added that the RBA could reduce interest rates if necessary. With even the RBA talking about currencies, do you really think that the G7/G20 statement about countries not competing to reduce the value of their…

Japan: “Japan is not, and will never be, a tier-two country” the Japanese PM, Mr Abe, stated during his visit to the US. Whilst true, such a statement is bound to annoy Beijing, who see themselves as the sole regional power. Mr Abe is also proposing to increase defense spending and defend Japanese sovereignty of…

Australia: RBA governor Mr Stevens suggests that the A$ was not seriously overvalued (though he was “surprised” that it had not declined by more) and that a higher rate would be necessary for some kind of intervention. He also hinted that Australian interest rates were on hold for the moment (he stated that they are…

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Japan’s trade deficit rose sharply to US$17.5bn in January. Whilst exports rose by +6.4% Y/Y (above the +5.6% expected), the weaker Yen and, as a result, much higher energy prices, increased the deficit materially. Imports rose by +7.3%, reflecting the weaker Yen. 80% of Japan’s imports are denominated in foreign currencies, as opposed to 60%…

The RBA, the Australian Central Bank has stated that the stimulative effects of lower interest rates was being seen in the Australian economy. The governor added that there was further scope to “ease policy further, if that becomes necessary”. However, expectations were for a more dovish statement. The A$ rose;   The Australian Green party…

The G20 meeting was a waste of time, as usual. The countries attending, in effect, have allowed Japan to pursue its proposed expansionary fiscal and monetary policy, though has shown it the yellow card in terms of overtly talking about weaker Yen levels. No great surprise. The next item on the agenda is the selection…

Ah, ha, Mr Amari, the Japanese Minister of Economy, has had a rethink. He has withdrawn his previous statement that the Japanese authorities should target a 13k Nikkei level by the end of March. Blast and here was I thinking we could just follow his play and retire to the beach forever !!!; Japanese press…