The 'Godfather' of Abenomics, Koichi Hamada, warns that Japan risks being sucked into a fresh financial crisis unless the imminent sales tax increase from 8% to 10% next April is shelved. He reportedly states that if Japanese consumers "see another black cloud on the horizon that will impact their willingness to spend." In an interview with Japan's Yomiuri Shimbun newspaper, Mr. Hamada said he was concerned about the effect such a hike would have on consumer confidence. This comes as reports say that the Bank of Japan's negative rates risk, which we previously highlighted, is destroying the loan market as the freeze looks set to extend into a third month.
The 'Godfather' of Abenomics, Koichi Hamada, warns that Japan risks being sucked into a fresh financial crisis unless the imminent sales tax increase from 8% to 10% next April is shelved. He reportedly states that if Japanese consumers "see another black cloud on the horizon that will impact their willingness to spend." Although he supports the increase, he believes the government needs to postponed it until it is confident Japan's economy can handle another rise. This comes as reports say that the Bank of Japan's negative rates risk, which we previously highlighted, is destroying the loan market as the freeze looks set to extend into a third month.