More from the Japanese press this morning. Hopes are high that the LDP landslide is going to result in quick action both on the monetary and fiscal fronts:
Abe has indicated that economic conditions next year will determine whether a planned consumption tax rise goes ahead. The 5 percent tax was due to double by 2015.
“The LDP’s landslide election victory gives it a virtually free hand in policy,” Robert Feldman, head of Japan economic research at Morgan Stanley MUFG Securities Co., said in a report Monday. “The macro stance will shift to ‘print and spend.’ ”
Itochu Corp. and JP Morgan Chase & Co. expect the BOJ to expand its asset-purchasing fund, its main policy tool, at a Wednesday-Thursday meeting.