Abe advisor waxing lyrical on Reuters
- Government should postpone sales tax hike indefinitely or cut it to 7% from 8%
- Says Abe seems to understand concerns about risk to consumption relating from another hike
- Expects BOJ to wait and see effects of negative rates
- Expects next BOJ move to be expansion of QQE along with a further rate cut
- Says new BOJ nominee Sakurai would be a strong supporter of Kuroda's aggressive stimulus
Honda is a bit of a wild horse. He's been banging on about aborting the sales tax hike for a while and is in favour of the BOJ easing further. He did say last month that the BOJ might ease this month but he's changed his tune on that now.
Yen pairs are under pressure once again and part of that is likely to be all these mini confirmations and views that the BOJ won't be doing anything next week.
