New Japanese Prime Minister Yoshihide Suga has inherited Abenomics but its apparently being renmaed out there.
In early comments Suga has stressed deregulation will play a bigger role though. Let’s see how he goes with that ….
Analysis from SMBC Nikki in Tokyo suggest that the initial impact of economic deregulation will be deflationary and so push up the real interest rates in the short term. Thus will be a supportive factor for the yen and keep it under 105.
Huh. It may mean less yen heading offshore from Japan but I can’t see it necessarily prompts inflows to the country. Not buying that ‘stays below 105’ argument sorry.