OECD:

  • BOJ must continue monetary expansion while eyeing risks such as disrupting bond market and fuelling asset bubbles
  • Financing of Japan's large fiscal deficit at low costs will not last indefinitely
  • Outlook for JGB market will be more uncertain once BOJ hits inflation target and phrases out QQE
  • Says structural reform most crucial component of Abenomics, but has lagged behind fiscal and monetary stimulus

The Organisation for Economic Cooperation and Development (OECD) upgraded its forecasts:

  • Expects Japan's economy to grow 1.0 percent this year, up from 0.8 percent foreseen in November, and 1.4 percent in 2016, up from 1.0 percent, reflecting expectations for stronger business investment

Headlines via Reuters