Overnight press ….
Etsuro Honda (an economic adviser to Japanese PM Abe) said in an interview with The Wall Street Journal
- “The effects of Abenomics are weakening compared with last year”
- Also said the Bank of Japan would need to take more action to achieve its inflation goal if the current situation continues
- Added that the sales-tax rate hike (to 8% from 5% on April 1) has cut consumers’ real purchasing power, reducing domestic demand … saying further that the government shouldn’t repeat next year (the next hike is currently on the agenda for October 2015)
- “Abenomics and the sales-tax increase are policies facing in opposite directions. If you step on the gas and hit the brakes at the same time, you know what will happen? The car will go into a spin.”
More at the Journal (gated): Abe Adviser Warns Against Further Japan Sales-Tax Increase