Japan industrial production taking a hit from tensions with China.
- 0 Comments
The tension between Japan and China is taking a big toll on Japan’s industrial production. There is underlying problems inherent in Japan courtesy of massive debt but also the unfavorable demographics that Japan will be experiencing. So of course the solution from Japan’s central bank is simply to go into more quantitative easing as if this has improved their economy over the last two decades. “WSJ: – The central bank’s policy board decided Tuesday to increase the BOJ’s asset purchases to ¥91 trillion ($1.14 trillion) from ¥80 trillion, and to introduce a new lending facility designed to stimulate loans by banks. The fresh measures marked the first time since May 2003 that the BOJ has taken easing steps two months in a row. The bank said it took action to keep Japan’s economic policy on the path “to sustainable growth with price stability.”
The BOJ also downgraded its assessment of the economy, noting declines in both exports and output, key drivers of the country’s economic growth. “Japan’s economy has been weakening somewhat,” it said in a statement, compared with its previous description of economic activity as “leveling off more or less.”
Not exactly a positive looking trend.