BOJ retains economic views on all 9 areas amid US tariffs threat
Ideas:
Each region in Japan might be a like sector where there are always going to be growth or not so good growth depending on the sector. Some sectors, and in this case regions, will always grow more than others usually because the size of the population in that sector and they type of jobs in that sector.
These expressions are always used as the Japanese government doesn't want to label a region as less than adequate in economic growth, as they always want or try to be positive for each sector as much as possible.
T's tariffs, for Japan and most of the world except China, is on hold so it's too early to really say what is going to happen as even today T exempted smart phones and computers from tariffs.
The same thing is happening in the US with US companies and most likely all companies around the world at this time, as no one knows what to or how to plan for the future.
And maybe the same can be said for US consumers and especially those close to retirement as the US in the US stock market has wiped out billions of dollars from retirement accounts and maybe globally too.
So Japan is in the same situation as other economies are in right now and no one really knows how to plan for whatever T is going to do in 90 days.
Because there is so much uncertainty with what is going to happen with T tariffs in 90 days again no one knows how to plan so most likely the best plan is to do no harm at this point for now until everyone, including the Bank of Japan has a more clear picture of the situation.
Will the Bank of Japan increase the key rate. Probably not as even the BOJ might be on hold, even though the Japanese economy seems to be trending in the right direction, but that could all change in 90 or even less if T often changes his mind which he does about many things.
The unfortunate thing is the Japanese economy might have finally started to move away from the deflation cloud hanging over the economy and the stagnation situation too seems or seemed to be lifting.
Some have suggested that the Japanese economy, with the T tariffs could lose 2% or more in economic growth each year. But of course, again, that could be different for each region depending on the population and the companies that are in the region.
Again, no one knows exactly what is going to happen and what the exact impact will be for Japan and the global economy.
Estimates are good and needed but as usual they are never perfect or exact as they are often just a best guess, despite the best formulas or equipment used.
The unfortunate thing is the US/China trade war is going to affect all countries as supply lines are going to be significantly affected even though a country or company with no real connections China except, these days, supply lines are so intricately connected all things are in play for being affected right now.
Have a nice day!
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