Priority shift in Japan could alter emphasis of Abenomics

Tokyo

IT now appears all but certain that Prime Minister Shinzo Abe will postpone the politically risky move of raising Japan's unpopular consumption tax - and that he will announce this at the Group of Seven (G7) summit hosted by Japan in May.

The move could alter the nature of Abenomics, say analysts, in that it could take Japan from a heavy reliance on monetary policy to leaning more on fiscal stimulus. This could in turn reduce the clout that the Bank of Japan (BOJ) has wielded on the economy and on the yen exchange rate over the last several years.