James Smith, Economist in Developed Markets at ING Bank, explained that as Japan approved its FY2016 budget, PM Abe defied critics and announced that the 2017 tax hike will go ahead as planned.
Key Quotes:
“The move is widely considered to be negative for economic growth, following a hike in 2014 which pushed the economy into technical recession.”
“PM Abe also hinted that he will use May’s G7 meeting to push for co-ordinated action, although in our opinion, such a move is unlikely to be favoured and agreed upon by all G7 members.”
(Market News Provided by FXstreet)