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27 Mar 2015
Abe’s objective of eliminating Japan’s primary budget surplus by 2020 unrealistic – BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ, comments that the next test in ‘Abenomics’ would be a crucial one as he feels that PM Abe’s long-term objective to eliminate Japan’s primary budget surplus by 2020 looks unrealistic.
Key Quotes
“PM Abe today repeated that he intends to reach the long-term fiscal objective of eliminating Japan’s primary budget surplus by 2020.”
“While the government looks set to achieve the target of halving it by 2015, the 2020 goal is unrealistic based on current fiscal conditions”
“Hence, the fiscal consolidation plan that the government has promised will be announced over the summer will be crucial.”
“It will also serve as a reminder that BOJ policy will need to remain ultra-lose given the degree of fiscal consolidation that will be required in order to hit that 2020 target. A credible plan may also encourage renewed yen selling over the summer months.”
Key Quotes
“PM Abe today repeated that he intends to reach the long-term fiscal objective of eliminating Japan’s primary budget surplus by 2020.”
“While the government looks set to achieve the target of halving it by 2015, the 2020 goal is unrealistic based on current fiscal conditions”
“Hence, the fiscal consolidation plan that the government has promised will be announced over the summer will be crucial.”
“It will also serve as a reminder that BOJ policy will need to remain ultra-lose given the degree of fiscal consolidation that will be required in order to hit that 2020 target. A credible plan may also encourage renewed yen selling over the summer months.”