Japan’s inflation rate dropped to 2.5% in September, below the forecasted 2.7%, offering relief to the Bank of Japan. With prices falling 0.3% from the previous month, the central bank may signal an end to its rate hike cycle. However, the economy is showing recessionary signs. Industrial production plunged 4.9% year-over-year in August, with a 3.3% monthly drop. Machine orders fell 3.4% compared to last year, and factory capacity utilization slid 5.3%. These figures could trigger renewed pressure on the yen.
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47 sats \ 4 replies \ @Satosora 18 Oct
They will forever be under pressure because they have invest in the USD too much.
Unless they become independent completely.
But for an island country, that is hard.
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30 sats \ 3 replies \ @TomK OP 18 Oct
True. And then there is this 'little' problem with demografics
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47 sats \ 2 replies \ @Satosora 18 Oct
The Japanese are becoming an older generation, so their costs are going to increase for a lot of things.
I wonder if they have some kind of sovereign fund?
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30 sats \ 1 reply \ @TomK OP 18 Oct
Their 'fund' is the BoJ which holds their sovereign debt. It's a total mess
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0 sats \ 0 replies \ @Satosora 18 Oct
Thats not good at all because there isnt any oversight.
Or the oversight is minimal.
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0 sats \ 0 replies \ @Rothbardian_fanatic 18 Oct
They have had the same problem since the late ‘80s. When the real state bubble burst everything went to hell because much of the system was based upon the real estate. Remember? They were buying up all kinds of USA assets like Paramount Pictures and New York real estate. When they went bust, a lot of American properties got sold back at firesale prices. Their central bank, which is not to independent, lowered the interest rates to the zero bound and started the Yen carry trade. This is one reason that their economy has never been able to recover, the zero bound on interest rates.
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0 sats \ 0 replies \ @7e6e393a56 18 Oct
At the end of the Second World War, the USA, afraid of Japan going to the other political bloc, invested a lot there. But the drop in birth rates and the loss of competitiveness in the industrial sector are leading to this
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