Japan’s weakest export growth in a year spurred a wider-than-forecast trade deficit in March, adding to challenges for Prime Minister Shinzo Abe in steering the economy through the aftermath of an April 1 sales-tax rise.
Bank of Japan Governor Masaaki Shirakawa may find resistance among board members to expanding an emergency loan program after economic reports indicated the recovery is strengthening. More members may oppose boosting the fund after two voted against doubling it to 20 trillion yen ($214 billion) last month, a person familiar with the matter said. The bank has yet to fully judge the impact of that step, said a second person informed of the matter. They spoke on condition of anonymity because the talks before the April 30 BOJ meeting were private. The potential split reflects signs of a rebound -- including unemployment at an 11-month low and the biggest gain in retail sales in 13 years -- with a lingering threat of deflation. Some board members may argue that enlarging the bank-loan program would help assure consumer prices rise, said economist Hiroaki Muto. “We can’t completely rule out the chance that the BOJ will take more action this week, as the end o
Akira Amari, Japan’s minister for economic and fiscal policy, has so much on his plate that all of his titles don’t fit on his business card. He’s also the minister in charge of economic revitalization and reforming social security and taxes and the head negotiator for the Trans- Pacific Partnership trade pact, Bloomberg Markets magazine will report in its October special issue on the 50 Most Influential people in global finance.
Japan’s economy grew less than forecast in the first quarter as an export-led recovery failed to stoke consumer spending, putting pressure on the central bank to do more to end deflation as it begins a two-day meeting.
Japanese consumers are making deeper cutbacks after the March 11 earthquake than anticipated, heightening the urgency for policy makers to unveil measures to end the nation’s third recession in a decade.