BOJ May Revisit Stimulus in ’15 to Offset Tax, Nomura Says
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The Bank of Japan isn’t done with monetary stimulus and may jolt markets a third time as it looks to offset the impact of an “almost inevitable” sales tax increase, Nomura Holdings Inc. said.
The central bank’s decision Oct. 31 to add to already unprecedented bond purchases lifts the chances Prime Minister Shinzo Abe will proceed with a plan to raise the national sales tax, according to a survey of 10 economists. Abe should decide by year-end whether the levy will be raised to 10 percent next October, from eight percent now.