Masaaki Kanno Japan Quotations

The strength of domestic demand seems real. I believe Japan will achieve roughly three percent growth this year.

With core consumer prices set to rise steadily above zero and today's GDP report confirming that a steady recovery is at work, there is almost no obstacle left for the Bank of Japan in ending its super-loose monetary policy.

The Bank of Japan will probably end its zero-rate policy in July or August. If the labor market becomes tighter and gains in wages and consumer prices pick up momentum, the bank may have to make another rate increase by the end of this year.

Japan will maintain growth driven by demand at home, particularly by solid consumer spending, as the labor market is becoming tight, propping up wages and household incomes. Upward pressure on prices will intensify next fiscal year, when the employment situation will become much tighter.

This is a new trend in Japanese politics. People are increasingly voting on the policies of individual parties. Now the manifestos of the different parties have become very clear.

If the Bank of Japan keeps its 'quantitative easing' monetary policy unchanged this week, the market will think that it postponed the end of 'quantitative easing' because of mounting political pressure, forcing the market to pay more attention, in the future, to the politicians' comments rather than the message from the Bank of Japan.