Decision By Japan PM Abe To Postpone Sales Tax Hike Means Abenomics Has Failed: DPJ

Posted by EM_Equity ⋅ October 28, 2014 ⋅ Leave a comment

Filed Under $DXJ, $EWJ, $JPY, Asia, BOJ, central banks, interest rates, Japan, JGB, QE, QQE, Shinzo Abe, Stimulus

Japan PM Shinzo Abe, photo courtesy AFP

A decision by Japanese Prime Minister (PM) Shinzo Abe to not go ahead with his planned sales tax hike in 2015 would be the equivalent to admitting that his “Abenomics” recipe for an economic revival of Japan was a failure, the Secretary-General of the main opposition Democratic Party of Japan (DPJ) said on Tuesday, Reuters reports.

“If they don’t raise the sales tax while continuing to say Abenomics is a success, that would be the worst,” Democratic Party of Japan Secretary-General Yukio Edano told Reuters during an interview.

“Both the fiscal situation and the economy would worsen,” he said.

When the Secretary-General was asked if the decision to postpone the sales tax hike would be the equivalent of declaring that Abenomics was a failure, he said: “We think so.”

Source: Reuters