PM Abe continued on his relentless assault on the BOJ and today he repeats his request for the bank to act on the 2% inflation target.
By Robert Jillies
PM Abe continued on his relentless assault on the BOJ and today he repeats his request for the bank to act on the 2% inflation target. In addition, he mentioned that the fiscal spending will not be forever and that once growth and inflation is attained then raising taxes will be viable.
Meanwhile, bond traders are worried that the Fed may cut short QE program as early as the end of 2013 which could indicate a possible rise in interest rate to curb potential rise in inflation. This argument is based on the latest media frenzy that the US economy is on the road to recovery. Such argument is also boosted by a better economic data from the Euro zone as well as verbal confirmation from European leaders that they are out of the crisis.
In addition, China better than expected GDP numbers lend a hand to the current optimistic equities market. However, is this optimism a sustainable one? ...