Masaaki Kanno (菅野 将晃, Kanno Masaaki, born August 15, 1960) is a former Japanese football player and manager. His son Shota Kanno in also former footballer and who is the current head coach WE League club of Nojima Stella Kanagawa. (wikipedia)
I expect salaried workers' incomes to rise after April. This will push the deflator up more.
We are seeing a series of good indicators pointing to solid recovery: improving production, improving exports, improving employment and improving spending.
This shows the increase in spending is not due to a one-off factor. We are seeing consumers becoming more and more confident about the future economic trend.
We can expect a good 3 percent growth in calendar 2006.
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 trend of Japan's economic recovery won't stop. The central bank seems to become increasingly confident that it can change policy around the middle of 2006.
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.
We think a decision to end quantitative easing and a new framework will have to come out together as a package.
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.
The strength of domestic demand seems real. I believe Japan will achieve roughly three percent growth this year.
