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2 Oct 2013
Flash: BoJ easing could be extended in scope and duration - Fidelity
FXstreet.com (Barcelona) - On the back of Japan’s announcement to increase the sales tax to 8% from the current 5%, which comes combined with a Y5tr stimulus package to offset the fiscal drag, according to Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment, "we’d need to see evidence of a self-sustaining recovery to stay with Japan."
Key Quotes
"We think investors are underestimating the positive impact of Bank of Japan easing that has only just got under way and that could be extended in scope and duration as the sale tax hike approaches."
"Further yen weakness and a pick up in capital spending should boost the economy and stock market and Japan is very well placed to benefit from a strengthening and broadening in global growth if US fiscal headwinds lift in 2014 as we expect."
Key Quotes
"We think investors are underestimating the positive impact of Bank of Japan easing that has only just got under way and that could be extended in scope and duration as the sale tax hike approaches."
"Further yen weakness and a pick up in capital spending should boost the economy and stock market and Japan is very well placed to benefit from a strengthening and broadening in global growth if US fiscal headwinds lift in 2014 as we expect."