US ratings agency out with a note on Japan 18 July 2016
- prospects of faster fiscal consolidation in Japan seem remote
- recurring stimulus over several years risks further undermining of public finances
- macroeconomic performance and outlook remain a weakness
Fitch rightly issuing a word of warning.
- expects a further cut in interest rates this year alongside news fiscal stimulus
- expects gross general govt debt to GDP to continue rising 1-2pp per year through to 2024 from 245% at end-2016
Meanwhile USDJPY and yen pairs a little lower again as traders take some intra-day money off the table.
