Last comments from Abe
Tax revenue has risen
Can't say Abenomics is a failure
Won't deny he mulled over dissolving the lower house
Not considering a general election at the moment
All done.
USDJPY is down around the lows at 109.65 after slipping from 110.00 over the speech. We've now got confirmation of the worst kept secret so the world can move on.
On one hand I have some sympathy for Abe and Japan as they have constantly faced headwinds and a slowdown in global growth couldn't have come at a worse time, particularly in their part of the world. That said, the sales tax hike delay isn't exactly an off the cuff decision as we've been watching the slowdown happen for months. It also strikes me that the 2.5 year delay is awfully long. It may be a political procedural thing or it may be that Abe is being super cautious. It could also be he's only giving us half the story about the problems facing Japan.