Senior IMF official says first phase of Abenomics has gone well

On the wires;

• Senior IMF official says first phase of Abenomics has gone well, now the challenge is to shift to self-sustained, private demand-led economic growth
• Rise in Japan’s FDI, Japan bank lending to Asia is help offsetting concerns over Fed tapering & related capital outflows
• Nominal rise in wages is essential for Japan to exit deflation
• Must weigh positive impact on economic growth vs. fiscal cost in considering corporate income tax cuts
• Structural reforms essential, bit steps to increase supply could increase deflationary pressures in the short term