Japan Economic Weekly

Research evidence excerpt

Japan Economic Weekly

Global Markets Research

23 June 2026Japan Economic Weekly

Economics - Japan

The focus of attention has shifted to growth strategies and Research Analysts

consumption tax cuts Japan Economics

The economy, prices, and financial conditions favor more rate hikes Kyohei Morita - NSC kyohei.morita@nomura.com

1.Domesticpolicy(BOJ):Theeconomy,prices,andfinancialconditionsatthe +81 3 6703 1395

heartofmonetarypolicymanagement(KyoheiMorita) Masaki Kuwahara - NSC

• The focus of the BOJ's monetary policy management is likely to be on the economy, masaki.kuwahara@nomura.com

+81 3 6703 3876 prices, and financial conditions. It will take some time for an easing of the tensions in

the Middle East to be reflected in an easing of quantitative and price-related supply Kengo Tanahashi - NSC

constraints. Nevertheless, we think these three factors (the economy, prices, and kengo.tanahashi@nomura.com

+81 3 6703 1295 financial conditions) favor more rate hikes.

Uichiro Nozaki - NSC

2.Domesticpolicy(government):FocusinlateJunelikelytobeongrowth uichiro.nozaki@nomura.com

strategiesandconsumptiontaxcuts(KengoTanahashi,MasakiKuwahara) +81 3 6703 1284

• Now that the monetary policy meeting is over, we expect the focus of attention to shift Yuki Ito - NSC

from monetary policy to fiscal policy. By the end of this month we expect the yuki.ito@nomura.com

government to finalize its growth strategies for this year and Prime Minister Takaichi to +81 3 6703 3867

make a final decision on the consumption tax cuts. Yuna Minegishi - NSC

yuna.minegishi@nomura.com

• The Growth Strategy Council is reportedly envisioning public-private investment of +81 3 6703 1287

around ¥370trn by FY40. It will be interesting to see how much public-sector support is