Doubling Japan’s sales tax by 2015 won’t be enough to contain the nation’s growing debt load and the government needs to outline how it will pay for swelling social-welfare expenses, a Standard & Poor’s analyst said.
Standard & Poor’s says if the Bank of Japan increases Japanese government bond purchases that could help the nation overcome deflation, adding to pressure on the bank to consider further monetary stimulus.
Standard & Poor’s said Japanese Prime Minister Yoshihiko Noda’s administration hasn’t made progress in tackling the public debt burden, an indication it may be preparing to lower the nation’s sovereign grade.
Prime Minister Naoto Kan ’s election loss could lead to a downgrade of Japan’s credit rating should it hamper his ability to address the world’s largest public debt, Standard & Poor’s and Moody’s Investors Service said.
Disruptions in Japan’s power supply after the world’s strongest earthquake in more than six years may affect the country’s economic output and hurt the rest of the region, Standard & Poor’s Ratings Services said today.
The Indian government’s plan to boost its borrowings for the next six months by 32 percent is “not surprising” and is “within the scope of expectations,” said Takahira Ogawa, Singapore-based director of sovereign and international public finance ratings at Standard & Poor’s.