Moody’s sees positive shift in Japan’s growth, resilience remains key test

Moody’s sees signs of sustained growth and stable inflation in Japan but says resilience to future shocks remains a key test. The agency rates Japan A1 with a stable outlook.

• Moody’s analyst Martin Petch said inflation expectations appeared reasonably anchored around 2%.· 2 sources
• Moody’s rates Japan A1 with a stable outlook, a rating unchanged since the agency downgraded the country from Aa3 in 2014.· 2 sources
• Petch said the impact of the government’s spending and food sales tax plans would depend partly on whether it offsets lost revenue; the government’s investment initiative also faces questions about private-sector participation and productivity gains.· 2 sources