Japan Chemical Trading Blog
Kuroda Bazooka and Japanese Economy
It’s been two weeks since the Bank of Japan offered its surprise QQE2 ‘bazooka’ prompted by the bank’s governor, Kuroda.
During this period, the dollar-yen exchange rate saw the Japanese yen depreciate against the dollar by 6 Japanese yen, and the Nikkei stock average has been up by over 1,500 Japanese yen.
In addition, the U.S. Dow average has been up by over 400 USD.
So far, the situation calls for a celebration.
Behind this background lies the sluggish domestic economy that has failed to improve following the consumption tax rise implemented in April, and this ‘bazooka’ may have an element of functioning as ‘cover fire’ for Abenomics.
Although it may seem to have some effect at the moment, I don’t feel like fully supporting this political measure as I’m unsure about where it is heading.
Governor Kuroda must be feeling the same way.
The lady owner of a bar in Kitashinchi where I went yesterday for the first time in a long while told me she saw an increase in the number of customers in November compared to October.